Question 2:
It takes so long for an expansionary monetary policy initiative
to have its ultimate effect that the result is not the elimination
of the current downturn but an increase in the magnitude of the
next bout of excess inflation. Since the same is true of
contractionary monetary initiatives, it makes no sense for the
central bank to attempt to eliminate the business cycle. Rather,
it should concentrate on maintaining an appropriate stable
long-term inflation rate.
True or false?