In the New Classical View, Whether Changes in the Nominal

question 81

Multiple Choice

In the new classical view, whether changes in the nominal money supply affect output in the short run depends on whether

• A)the changes are expected or unexpected.
• B)prices are flexible or inflexible.
• C)the nominal interest rate is affected by changes in the money supply.
• D)the Fed reacts passively or actively to the onset of recessions.

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