Shifts in Monetary Policy Will

question 75

Multiple Choice

Shifts in monetary policy will

• A) stimulate output and employment almost immediately, and this will make it easier for policy-makers to change monetary policy in a manner that will promote macroeconomic stability.
• B) stimulate output and employment almost immediately, and this will make it more difficult for policy-makers to change monetary policy in a manner that will promote macroeconomic stability.
• C) stimulate output and employment with time lags that are long and variable and this will make it easier for policy-makers to change monetary policy in a manner that will promote macroeconomic stability.
• D) stimulate output and employment with time lags that are long and variable and this will make it more difficult for policy-makers to change monetary policy in a manner that will promote macroeconomic stability.

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Definitions:

Ellipse

A geometric shape that resembles a flattened circle and is defined mathematically as the locus of points such that the sum of the distances from two focal points is constant.

Circle

A simple closed shape in Euclidean geometry that is the set of all points in a plane that are at a given distance from a given point, the center.

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