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Economics
MEDIUM
ENGLISH
Economics
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
Option A
B
None of these answers are true
Option B
Long lags enhance the ability of policy makers to fine tune the economy
Correct answer
D
When policy makers implement activist stabilization policies there is a significant risk that their policies may actually have a destabilizing effect
Option D
Correct answer: C
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