-An Important Feature of the New Classical Model Is That

question 49

Multiple Choice

-An important feature of the new classical model is that an expansionary policy, such as an increase in the rate of money growth, can lead to a decline in aggregate output ________.

• A) if the public expects an even more expansionary policy than the one that is actually implemented
• B) if the policy comes as a surprise
• C) if the public expects a less expansionary policy than the one that is actually implemented
• D) if the policy is anticipated