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The Effectiveness of Monetary Policy as a Stabilization Tool Is

Question 47

Multiple Choice

The effectiveness of monetary policy as a stabilization tool is limited by


A) activist economists, who exert pressure on politicians.
B) the inability to forecast the future and time policy changes in a stabilizing manner.
C) Congressional attempts to offset changes in monetary policy with modifications in fiscal policy.
D) the inability of the Federal Reserve to alter the money supply.

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