Multiple Choice
In which case,if any,will inflation remain higher after a temporary adverse supply shock?
A) both when the central bank maintains a higher money supply growth rate and when the central bank does nothing
B) only if the central bank does nothing
C) only if the central bank maintains a higher money supply growth rate
D) None of the above is correct.Whether the central bank maintains a higher money supply growth rate or not,the inflation rate will return to its original level.
Correct Answer:

Verified
Correct Answer:
Verified
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