Multiple Choice
Most economists now accept the proposition that
A) an ideal monetary policy would allow the money supply to grow at a constant rate.
B) to reduce the long-run rate of inflation there must be a sustained monetary contraction.
C) monetary policy leaves real GDP and the overnight lending rate unaffected in the short run.
D) lowering the Bank Rate will have no effect on desired investment in the short run but will have a direct effect on core inflation.
E) monetary policy is the only policy tool available for influencing aggregate demand.
Correct Answer:
Verified
Correct Answer:
Verified
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