Fully Anticipated Monetary Policy Actions Cannot Alter Either the Rate

question 123

Multiple Choice

Fully anticipated monetary policy actions cannot alter either the rate of unemployment or the level of real GDP. This statement is

• A)the policy irrelevance proposition.
• B)the nonaccelerating inflation rate of unemployment theory.
• C)the Phillips curve.
• D)discretionary policy making.

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Definitions:

Awareness

The state of being conscious or informed about something.

External Stimuli

Environmental factors or influences that can elicit a physiological or psychological response from an individual.

Optimal

The best or most favorable condition, level, or amount of something for a particular situation or purpose.

Sleep

A natural and periodic state of rest during which consciousness of the world is suspended.