Monetary policy authorities can only affect the real economy, if:
A)their actions are anticipated by the public.
B)their actions are consistent and predictable.
C)their actions are fully communicated to the public.
D)their actions systematically fool the public.

Question

Quizplus · Accepted Answer

Monetary policy can impact the real economy if it systematically surprises or "fools" the public, as this can lead to changes in consumption, investment, and other economic behaviors before people adjust their expectations. Predictable or fully communicated actions are often already factored into economic decisions, reducing their immediate real-world impact.

Monetary Policy Authorities Can Only Affect the Real Economy, If