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Refer to Figure 15-1. One argument against the use of activist monetary policy claims that it can destabilize the economy. For example, suppose we are
Refer to Figure 15-1. One argument against the use of activist monetary policy claims that it can destabilize the economy. For example, suppose we are in a recessionary gap. Expansionary monetary policy is implemented, but there are so many lags that by the time it has its effect, self-regulation has already closed the gap by itself. The end result is a movement from point a. B to point C. b. A to point C. c. B to point A. d. B to point D
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