Multiple Choice
If firms and workers have rational expectations,including knowledge of the policy being used by the Federal Reserve
A) expansionary monetary policy is especially effective.
B) expansionary monetary policy is ineffective.
C) expansionary monetary policy is effective in the short run,but not the long run.
D) expansionary monetary policy is effective in the short run and the long run.
Correct Answer:
Verified
Correct Answer:
Verified
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