Which of the Following Statements Is True About Monetary Policy

Multiple Choice

Which of the following statements is true about monetary policy and the unemployment rate?

A) Expansionary monetary policy can decrease the unemployment rate in the short run and in the long run.
B) Expansionary monetary policy has no effect on the unemployment rate in the short run or in the long run.
C) Contractionary monetary policy can decrease the unemployment rate in the short run but has no effect on the unemployment rate in the long run.
D) Contractionary monetary policy has no effect on the unemployment rate in the short run or in the long run.
E) Expansionary monetary policy can decrease the unemployment rate in the short run but has no effect on the unemployment rate in the long run.