Which Statement Is TRUE Regarding the Effects of Monetary Policy

question 161

Multiple Choice

Which statement is TRUE regarding the effects of monetary policy when a real shock occurs?

• A) Monetary policy can always be used to simultaneously achieve a high real growth rate and lower the inflation rate.
• B) Monetary policy cannot simultaneously achieve a high real growth rate and lower the inflation rate.
• C) Monetary policy can be used only to change the real growth rate,but not the inflation rate.
• D) Monetary policy can be used only to change the inflation rate,but not the real growth rate.

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