The Imposition of a Protectionist Measure Should Produce

question 6

Multiple Choice

The imposition of a protectionist measure should produce

• A) a one-time shock to inflation even if not accommodated by fiscal or monetary policy.
• B) a permanent shock to inflation even if not accommodated by fiscal or monetary policy.
• C) a one-time shock to inflation only if accommodated by fiscal and monetary policies.
• D) a permanent shock to inflation only if accommodated by fiscal and monetary policies.
• E) a one-time shock to inflation if accommodated by monetary policy alone.

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