If All the Assumptions Underpinning the Policy Irrelevance Proposition Are

Multiple Choice

If all the assumptions underpinning the policy irrelevance proposition are in place, fully anticipated monetary policy will

A) affect the unemployment rate but have no impact on the level of real Gross Domestic Product (GDP) .
B) have an impact on real Gross Domestic Product (GDP) but cannot alter the level of unemployment.
C) effectively alter both the rate of unemployment and the level of real Gross Domestic Product (GDP) .
D) not change either the level of real Gross Domestic Product (GDP) or the unemployment rate.