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If,in the Coordination Failure Model,the Nominal Money Supply Acts as a Sunspot

Question 25

Multiple Choice

If,in the coordination failure model,the nominal money supply acts as a sunspot variable,then it is likely that the nominal money supply would

A) be procyclical.
B) be acyclical.
C) be countercyclical.
D) alternatively appear to be procyclical and countercyclical.

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