Most Economists Now Accept the Proposition That

question 75

Multiple Choice

Most economists now accept the proposition that

• A)an ideal monetary policy would allow the money supply to grow at a constant rate.
• B)to reduce the long-run rate of inflation there must be a sustained monetary contraction.
• C)monetary policy leaves real GDP and the overnight lending rate unaffected in the short run.
• D)lowering the Bank Rate will have no effect on desired investment in the short run but will have a direct effect on core inflation.
• E)monetary policy is the only policy tool available for influencing aggregate demand.

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