

MCQOPTIONS
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1. |
Which of the following statements about stabilization policy is not true ? |
A. | Many economists prefer automatic stabilizers because they affect the economy with a shorter lag than activist stabilization policy |
B. | None of these answers are true |
C. | Long lags enhance the ability of policy makers to fine tune the economy |
D. | When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect |
Answer» D. When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect | |