The Hypothesis in Economics Known as Hysteresis Is That

The hypothesis in economics known as hysteresis is that

A) the monetary transmission mechanism does not apply in an open- economy setting.
B) the path of real GDP in an economy can influence that economy's level of potential output.
C) changes in the money supply have a stronger influence on investment demand than do changes in fiscal policy.
D) the economy's adjustment process operates in response to an expansion of the money supply, but not a contraction.
E) the role of money in the long run is neutral.