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Which of the Following Statements Is Correct

Question 36

Multiple Choice

Which of the following statements is correct?


A) Through autonomous monetary policy adjustments the Federal Reserve can ultimately determine the equilibrium real interest rate in the long run.
B) Through autonomous monetary policy adjustments the Federal Reserve can ultimately determine potential output in the long run.
C) Through autonomous monetary policy adjustments the Federal Reserve can target any inflation rate in the long run.
D) all of the above
E) none of the above

Correct Answer:

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