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According to the Policy Irrelevance Proposition, Monetary Policy Can Affect

Question 188

Multiple Choice

According to the policy irrelevance proposition, monetary policy can affect real variables


A) in both the short run and the long run.
B) in the long run only.
C) in the short run only, and then only if the policy was unanticipated.
D) in the short run only, and then only if the policy was fully anticipated.

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