According to the Misperceptions Theory,if the Bank Wanted to Use

Multiple Choice

According to the misperceptions theory,if the Bank wanted to use monetary policy to influence the real economy,it would have to

A) increase the money supply whenever the economy was in a recession.
B) decrease the money supply whenever the economy was in an inflationary boom.
C) surprise the public with unexpected changes in monetary policy.
D) abide by its announced monetary targets.