Evaluate the following statements. Which of the following is/are true? (i) Advocates of active policy believe that the central bank should adjust its policy rate whenever the economy is cooling down or heating up. (ii) Advocates of passive policy believe that the government should increase government spending when aggregate demand contracts. (iii) Advocates of passive policy believe that policymakers should "lean against the wind" in response to fluctuations in output. O a. Only (iii) O b. Only (1) O c. O d. Only (ii) and (iii) Only (i) and (iii)

Evaluate the following statements. Which of the following is/are true? (i) Advocates of active policy believe that the central bank should adjust its policy rate whenever the economy is cooling down or heating up. (ii) Advocates of passive policy believe that the government should increase government spending when aggregate demand contracts. (iii) Advocates of passive policy believe that policymakers should "lean against the wind" in response to fluctuations in output. O a. Only (iii) O b. Only (1) O c. O d. Only (ii) and (iii) Only (i) and (iii)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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