Which of the following is FALSE?
A)in the long run, a central bank can effectively limit inflation
B)in the long run, a central bank can do fairly little to stimulate real GDP
C)in the long run, monetary policy has no effect on nominal GDP
D)unless inflation is very high, stimulating the economy does more to enhance economic welfare than controlling inflation
E)a central bank can lower the inflation rate but only by allowing for a loss in real GDP, at least in the short run

Question

Quizplus · Accepted Answer

Monetary policy has a direct impact on nominal GDP, which is the total value of goods and services produced in an economy without adjusting for inflation.

Which of the Following Is FALSE