The hypothesis that people know the "true model" of the economy and that they use this model to form their expectations of the future is the

According to the policy irrelevance proposition, monetary policy can affect real variables

A) in the short run only, and then only if the policy was fully anticipated. B) in both the short run and the long run. C) in the short run only, and then only if the policy was unanticipated. D) in the long run only.

Financial intermediaries reduce individual risk because they pool the funds of savers

Indicate whether the statement is true or false