What Impact Does Monetary Policy Have on the Long-Run Phillips

question 80

Multiple Choice

What impact does monetary policy have on the long-run Phillips curve?

• A)Monetary policy can only shift the long-run Phillips curve to the left.
• B)Monetary policy shifts the long-run Phillips curve to the right or left,depending on whether monetary policy is expansionary or contractionary.
• C)Monetary policy can only shift the long-run Phillips curve to the right.
• D)Monetary policy has no impact on the long-run Phillips curve.

---

Definitions:

Percentage-of-Completion

An accounting method recognizing revenues and expenses of long-term contracts as a percentage of work completed.

Transfer Pricing

The price charged when two parts of the same multinational corporation, often the parent company and a subsidiary in another country, engage in trade with one another.

Transfer Pricing

The setting of prices for transactions between entities under the same corporate umbrella, often used for strategic financial management and tax planning.

Clearing House Interbank

A financial institution providing settlement and clearing services for financial transactions between banks.