In the Impulse Response Function Presented in the Text, the Effects

question 87

Multiple Choice

In the impulse response function presented in the text, the effects of contractionary monetary policy on real GDP dissipate:

• A) almost immediately.
• B) after about 20 quarters.
• C) after less than a year.
• D) after about 3 to 4 quarters.
• E) There is no effect on real GDP.

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