The Central Bank had announced that it would allow M2 to grow by 8% this year, and M2 did grow by 8% this year. You would not expect
A) money to be neutral in the short run.
B) money to be neutral in the long run.
C) output to remain unchanged.
D) a movement along the short-run aggregate supply curve.

Question

Quizplus · Accepted Answer

The Answer of The Central Bank had announced that it would allow M2 to grow by 8% this year, and M2 did grow by 8% this year. You would not expect
A) money to be neutral in the short run.
B) money to be neutral in the long run.
C) output to remain unchanged.
D) a movement along the short-run aggregate supply curve.

The Central Bank Had Announced That It Would Allow M2