Monetary policy is thought to be:
A. equally effective in moving the economy out of a depression as in controlling demand-pull
inflation.
B. more effective in moving the economy out of a depression than in controlling demand-pull
inflation.
C. more effective in controlling demand-pull inflation than in moving the economy out of a
recession.
D. only effective in moving the economy out of a depression.
C. more effective in controlling demand-pull inflation than in moving the economy out of a
recession.
You might also like to view...
The above figure shows the long-run cost curves for a typical firm in a competitive market. If the number of firms is unrestricted and input costs are constant, derive the long-run market supply curve
What will be an ideal response?
An inflationary gap exists when consumers and businesses are demanding more output than the economy is capable of producing at full employment
a. True b. False Indicate whether the statement is true or false