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According to the Natural Rate Hypothesis, What Can Government Policymakers

Question 122

Multiple Choice

According to the natural rate hypothesis, what can government policymakers influence?  


A)  stable interest rates and a stable money supply in the long run, but NOT in the short run 
B)  stable interest rates and a stable money supply in the short run, but NOT in the long run 
C)  the trade-off between inflation and unemployment in the long run, but NOT in the short run 
D)  the trade-off between inflation and unemployment in the short run. but NOT in the long run

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