Which of the following is NOT an argument against using monetary policy to prick asset-price bubbles?
A)The effect of increasing interest rates on asset prices is uncertain.
B)A bubble may only exist in some asset-prices and monetary policy will affect all asset prices.
C)Using monetary policy to prick an asset-price bubble may have adverse effect on the aggregate economy.
D)Even though credit-drive bubbles are easier to identify,they are still relatively hard to identify.

Question

Quizplus · Accepted Answer

The options A, B, and C are arguments against using monetary policy to prick asset-price bubbles, focusing on the uncertainty, broad impact, and potential adverse effects on the economy. Option D, however, does not present an argument against using monetary policy; it merely states a difficulty in identifying credit-driven bubbles, which does not directly argue against the use of monetary policy for this purpose.

Which of the Following Is NOT an Argument Against Using