Which of the Following Is Not True About Monetary Policy

question 112

Multiple Choice

Which of the following is not true about monetary policy?

• A)Contractionary monetary policy is often more effective at reducing the rate of economic growth than expansionary monetary policy is at increasing the rate of economic growth.
• B)The burden of contractionary monetary policy is not spread evenly among the population.
• C)Contractionary monetary policy can reduce export earnings.
• D)The full effect of monetary policy impacts the economy immediately, as unlike fiscal policy, monetary policy is not subject to time lags.

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