Multiple Choice
The primary reason why the Central Bank cannot systematically surprise the public with its monetary policy is
A) the nonneutrality of money.
B) the presence of productivity shocks that generate real business cycles independently of the monetary side of the economy.
C) the presence of rational expectations among the public.
D) the presence of propagation mechanisms within the economy.
Correct Answer:

Verified
Correct Answer:
Verified
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