Mainstream economists contend that, as stabilization tools,
A)discretionary fiscal policy is effective, but discretionary monetary policy is not.
B)discretionary monetary policy is effective, but discretionary fiscal policy is not.
C)both discretionary fiscal policy and discretionary monetary policy can be effective if appropriately used.
D)discretionary fiscal policy and discretionary monetary policy cause more instability than they cure.

Question

Quizplus · Accepted Answer

Mainstream economists generally believe that both discretionary fiscal and monetary policies can be effective stabilization tools if they are used appropriately, considering the economic context and timing.

Mainstream Economists Contend That, as Stabilization Tools