As represented by the Samuelson/Friedman debate regarding fiscal and monetary po

Question

As represented by the Samuelson/Friedman debate regarding fiscal and monetary policy, the most important policy debate in macroeconomics right now is

A. whether we should cut taxes or increase government spending.

B. whether a central bank should target inflation rates or interest rates.

the proper time and way to use monetary and fiscal policy in order to smooth the business cycle (recessions and booms).

whether we should be socialist or capitalist economies.

A. whether we should cut taxes or increase government spending.

B. whether a central bank should target inflation rates or interest rates.

the proper time and way to use monetary and fiscal policy in order to smooth the business cycle (recessions and booms).

whether we should be socialist or capitalist economies.

Explanation / Answer

Answer

c) the proper time and way to use monetary and fiscal policy in order to smooth the business cycle (recessions and booms).

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