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When the Economy Is in a Recession,how Can Monetary Policy

Question 29

Multiple Choice

When the economy is in a recession,how can monetary policy affect real output?


A) An expansionary monetary policy can potentially result in increased real output in both the short run and long run.
B) A contractionary monetary policy can potentially result in increased real output in both the short run and long run.
C) A contractionary monetary policy can potentially result in increased real output, but only in the short run.
D) An expansionary monetary policy can potentially result in increased real output, but only in the short run.

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