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The Central Bank Had Announced That It Would Allow M2

Question 35

Multiple Choice

The Central Bank had announced that it would allow M2 to grow by 8% this year, and M2 did grow by 8% this year. You would not expect


A) money to be neutral in the short run.
B) money to be neutral in the long run.
C) output to remain unchanged.
D) a movement along the short-run aggregate supply curve.

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