Expansionary Monetary Policy Can Have Immediate Real Short-Run Effects; Initially,no

question 132

Multiple Choice

Expansionary monetary policy can have immediate real short-run effects; initially,no prices have adjusted.But as prices adjust in the long run:

• A) the real impact of monetary policy is multiplied.
• B) the real impact of monetary policy is negative.
• C) the real impact of monetary policy is cut in half.
• D) the real impact of monetary policy dissipates completely.
• E) the real impact of monetary policy is unknown.

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