If all the assumptions underpinning the policy irrelevance proposition are in place, fully anticipated monetary policy will
A) affect the unemployment rate but have no impact on the level of real Gross Domestic Product (GDP).
B) have an impact on real Gross Domestic Product (GDP) but cannot alter the level of unemployment.
C) effectively alter both the rate of unemployment and the level of real Gross Domestic Product (GDP).
D) not change either the level of real Gross Domestic Product (GDP) or the unemployment rate.
D
Economics
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Transfer payments include
A) open market sales. B) Social Security. C) consumption taxes. D) dividends.
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If the President and Congress made decisions that increase the federal budget deficit, how will GDP growth change?
A. It will grow more quickly. B. It will grow at the same rate. C. It will grow more slowly.
Economics