Multiple Choice
The natural rate hypothesis implies that _____
A) the policy that results in low inflation is generally the optimal policy in the long run.
B) the policy that results in low inflation is generally the optimal policy in the short run.
C) the policy that results in high inflation is generally the optimal policy in the long run.
D) the policy that results in high inflation is generally the optimal policy in the short run.
E) the policy that results in zero inflation is generally the optimal policy in the short run.
Correct Answer:
Verified
Correct Answer:
Verified
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