An Expansionary Monetary Policy Will Cause Aggregate Output to Expand

question 81

Multiple Choice

An expansionary monetary policy will cause aggregate output to expand in the non-activist macroeconomic model ________.

• A) if the policy is unanticipated
• B) if the policy is anticipated
• C) only after a long and variable lag, provided the policy is anticipated
• D) never; output will never expand in the non-activist model when monetary policy is changed

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