According to the Modern View, the Impact of Expansionary Monetary

question 54

Multiple Choice

According to the modern view, the impact of expansionary monetary policy will

• A) be the same in the long run as in the short run.
• B) be the same regardless of whether the effects of the policy are anticipated or unanticipated.
• C) initially be an increase in real output if the policy is unanticipated, but in the long run, the primary result will be a higher price level (inflation).
• D) initially be an increase in prices if the policy is unanticipated, but in the long run, the primary result will be larger real output.

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Definitions:

Utilitarian Value

The usefulness or practical benefit of something, especially regarding the greatest happiness or benefit to the greatest number of people.

Vulnerable Habitats

Ecosystems or environments that are at risk of degradation, damage, or destruction due to human activities, climate change, or natural phenomena, requiring special attention for conservation.

Endangered

Refers to species that are at risk of extinction due to a significant decline in population or habitat.

Fruit-Eating Bats

Bat species that play a crucial role in ecosystems by pollinating plants and dispersing seeds while feeding on fruit.