If,in the Coordination Failure Model,the Nominal Money Supply Acts as a Sunspot

question 55

Multiple Choice

If,in the coordination failure model,the nominal money supply acts as a sunspot variable,then it is likely that the nominal money supply would

• A) be procyclical.
• B) be acyclical.
• C) be countercyclical.
• D) alternatively appear to be procyclical and countercyclical.
• E) be a leading indicator.

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