Results obtained from the Taylor model suggest that the effects of changes in the nominal money supply are neutral after
A)2 years.
B)4 years.
C)6 years.
D)8 years.

Question

Quizplus · Accepted Answer

The Taylor model suggests that changes in the nominal money supply become neutral after approximately 4 years, as the economy adjusts and prices fully reflect the changes in money supply.

Results Obtained from the Taylor Model Suggest That the Effects