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Which of the Following Is True

Question 35

Multiple Choice

Which of the following is true?


A) ​When increased government purchases or expansionary monetary policy does give the economy a boost, no one knows precisely how long it will take to do so.
B) ​Given the difficulties of timing stabilization policy, an expansionary monetary policy intended to reduce the severity of a recession may instead add inflationary pressures to an economy that is already overheating.
C) ​If velocity changes, but it moves in a fairly predictable pattern, the connection between money supply and GDP is still fairly predictable.
D) ​All of the above are true.

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