According to the Modern View, the Impact of Expansionary Monetary

question 54

Multiple Choice

According to the modern view, the impact of expansionary monetary policy will

• A) be the same in the long run as in the short run.
• B) be the same regardless of whether the effects of the policy are anticipated or unanticipated.
• C) initially be an increase in real output if the policy is unanticipated, but in the long run, the primary result will be a higher price level (inflation).
• D) initially be an increase in prices if the policy is unanticipated, but in the long run, the primary result will be larger real output.

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Definitions:

Permanent Disappearance

Refers to the condition or fact of being gone forever or not existing anymore.

Religiosity

The extent of interest, commitment, or participation in religious values, beliefs, and activities.

Death Anxiety

The fear of death and dying.

Finality Of Death

The irreversible and permanent cessation of life, marking the end of an individual's existence in the physical world.