Which Statement Is FALSE? in the Long Run, Monetary Policy

question 145

Multiple Choice

Which statement is FALSE? In the long run, monetary policy:

• A) affects only the aggregate price level.
• B) does not affect aggregate output.
• C) is neutral.
• D) increases potential output.

---

Definitions:

Treason

The crime of betraying one's country, particularly by attempting to kill the sovereign or overthrow the government.

Burr

A reference to Aaron Burr, the third Vice President of the United States, known for killing Alexander Hamilton in a duel and for his controversial political career.

Northwest Territory

A historic region of the United States that encompassed the area northwest of the Ohio River, established as a territory in 1787 and played a key role in westward expansion.