Econometric models of the U.S.economy generally agree
A)on the quantitative impact of monetary policy over a horizon of several years.
B)that an increase in money growth will increase output in the short run.
C)that an increase in money growth will decrease output in the short run.
D)that an increase in money growth will decrease output in the long run.
E) that "rational expectations" is the best way to generate policy forecasts.

Question

Quizplus · Accepted Answer

Econometric models generally agree that an increase in money growth will increase output in the short run, reflecting the idea that more money in the economy stimulates spending and investment, leading to higher demand and output.

Econometric Models of the U.S.economy Generally Agree