All of the following are arguments against stabilization policy except
A)Economic forecasting is highly imprecise.
B)Long lags may cause stabilization policies to in fact destabilize the economy.
C)Monetary policy affects aggregate demand by changing interest rates.
D)Fiscal policy must go through a long political process.

Question

Quizplus · Accepted Answer

Option C is not an argument against stabilization policy, but rather an explanation of how monetary policy affects aggregate demand. The other options (A, B, and D) all present arguments against stabilization policy.

All of the Following Are Arguments Against Stabilization Policy Except