On the Basis of Both Theory and Empirical Evidence, Most

Multiple Choice

On the basis of both theory and empirical evidence, most economists believe that changes in monetary policy have

A) important long- run effects by changing real interest rates.
B) no effect on real GDP or inflation in the long run.
C) no effect on real GDP or factor utilization in the short run.
D) no long- run effect on real GDP but a substantial long- run effect on inflation.
E) powerful effects on real GDP and factor prices both in the short run and in the long run.