The Central Bank Had Announced That It Would Allow M2

question 35

Multiple Choice

The Central Bank had announced that it would allow M2 to grow by 8% this year, and M2 did grow by 8% this year. You would not expect

• A) money to be neutral in the short run.
• B) money to be neutral in the long run.
• C) output to remain unchanged.
• D) a movement along the short-run aggregate supply curve.

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