Which of the following believe that discretionary monetary policy and discretionary fiscal policy are effective countercyclical policy actions?
A) rule advocates
B) activists
C) new classical economists
D) rational expectations theorists

Question

Quizplus · Accepted Answer

Activists believe in the use of both discretionary monetary and fiscal policies to stabilize the economy during economic fluctuations. Rule advocates, new classical economists, and rational expectations theorists, on the other hand, believe in the importance of policy rules and limitations on discretionary policy actions.

Which of the Following Believe That Discretionary Monetary Policy and Discretionary