Which of the following statements is FALSE?
A) Early Keynesianism downplayed the effectiveness of monetary as opposed to fiscal policy.
B) Monetarism argued that discretionary monetary policy does more harm than good.
C) The natural rate hypothesis places sharp limits on what macroeconomic policy can achieve.
D) Concerns about a political business cycle suggest that the central bank should not be independent and argue for a strong discretionary fiscal and monetary policy.
Correct Answer:
Verified
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