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Active stabilization policy can be rationalized in the New Keynesian interest rate targeting model because A. it makes it possible to obtain zero inflation. B.

  1. Active stabilization policy can be rationalized in the New Keynesian interest rate targeting model because

    A.

    it makes it possible to obtain zero inflation.

    B.

    the government knows best.

    C.

    it counteracts the influence of unions.

    D.
    it allows a faster return to economic efficiency.

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