Suppose the United States decides to go back on the gold standard. This should
A) improve the Federal Reserve's ability to target inflation.
B) decrease the Federal Reserve's ability to pursue active monetary policy.
C) increase the effectiveness of expansionary monetary policy.
D) increase the effectiveness of contractionary monetary policy.
B
Economics
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a. True b. False Indicate whether the statement is true or false
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The aggregate demand-aggregate supply model shows that closing an expansionary gap involves deflation and closing a recessionary gap involves inflation.
a. true b. false
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