Econometric Models of the U.S. Economy Generally Agree

question 2

Multiple Choice

Econometric models of the U.S. economy generally agree:

• A) that an increase in money growth will increase output in the short run.
• B) on the quantitative impact of monetary policy over a horizon of several years.
• C) that rational expectations is the best way to generate policy forecasts.
• D) that an increase in money growth will decrease output in the long run.
• E) that an increase in money growth will decrease output in the short run.