Discretionary monetary policy was more frequently employed


Question: Discretionary monetary policy was more frequently employed than discretionary fiscal policy in the two decades following World War II because

a. monetary policy could be altered without Congressional action.

b. economists did not yet believe in the effectiveness of fiscal policy.

c. inflation was not yet seen as a problem.

d. monetary policy was thought to be capable of raising output while holding down prices.

e. economic conditions did not seem to require any use of fiscal policy tools during this period.

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Microeconomics: Discretionary monetary policy was more frequently employed
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