Which of the Following Best Characterizes the Effects of Monetary

question 79

Multiple Choice

Which of the following best characterizes the effects of monetary policy?

• A)Monetary policy is neutral in both the short run and the long run; therefore, it does not affect real variables.
• B)Monetary policy is neutral in the long run, but it may have effects on real variables in the short run.
• C)Monetary policy has profound effects on real variables in both the short run and the long run.
• D)Monetary policy has profound effects on real variables in the long run, but is neutral in the short run.

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Definitions:

Mental Disorders

A wide range of conditions that affect mood, thinking, and behavior, impacting an individual's ability to function in daily life.

Diagnose

The process of identifying a disease or condition from its signs and symptoms.

Insomnia Disorder

The most common sleep disorder in older adults, with nocturnal symptoms of difficulty falling asleep, frequent awakenings, shortened sleep, and non-restorative sleep, and daytime symptoms of fatigue, sleepiness, depression, and anxiety. DSM-IV diagnostic criteria require the symptoms to persist for at least one month, to be perceived as stressful, and to not be secondary to any other disorder.

Hypersomnolence

A condition characterized by excessive daytime sleepiness or prolonged nighttime sleep, not explained by other medical or psychiatric conditions.