Decide how much to change the money supply

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Policymakers who want to stabilize the economy must decide how much to change the money supply, government spending, or taxes.Which of the following are reasons why it is difficult for policymakers to choose the appropriate strength of their actions? Check all that apply.There are lags between when policy is changed and when it affects aggregate demand. It is difficult to forecast the economy's future condition in response to a change in policy. It is difficult to anticipate how sensitive consumers and firms will be to the changes in policy.

Reference no: EM13895065

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