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If, in the Coordination Failure Model, the Nominal Money Supply

Question 1

Multiple Choice

If, in the coordination failure model, the nominal money supply acts as a sunspot variable, then it is likely that the nominal money supply would

A) be procyclical.
B) be acyclical.
C) be countercyclical.
D) alternatively appear to be procyclical and countercyclical.
E) be a leading indicator.

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