If the Aggregate Price Level Adjusts Slowly Over Time,then an Expansionary

question 41

Multiple Choice

If the aggregate price level adjusts slowly over time,then an expansionary monetary policy lowers

• A)only the short-term nominal interest rate.
• B)only the short-term real interest rate.
• C)both the short-term nominal and real interest rates.
• D)the short-term nominal,the short-term real,and the long-term real interest rates.

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