The policy irrelevance proposition implies that
A. unanticipated monetary policy actions are equally effective in stimulating both aggregate demand and aggregate supply.
B. anticipated monetary policy actions are ineffective in generating changes in real Gross Domestic Product (GDP).
C. anticipated monetary policy actions are effective in stimulating aggregate supply, but they are not effective in stimulating aggregate demand.
D. anticipated monetary policy actions are effective in increasing real Gross Domestic Product (GDP), but they do not reduce unemployment.
Answer: B
You might also like to view...
In the case of an appreciating domestic currency, central banks often sell foreign currencies in exchange for domestic currency to stop the appreciation
Indicate whether the statement is true or false
The majority of blacks were shipped from West Africa, but some also came from Madagascar and Zanzibar
Indicate whether the statement is true or false
The first antitrust law in the United States was the
A) FTC Act. B) Clayton Act. C) Sherman Act. D) Robinson-Patman Act.
An increase in nominal income will result in:
a. a decrease in money market equilibrium. b. an excess demand for bonds. c. an increase in bond prices. d. an excess supply of money. e. a higher interest rate.