Which of the following is NOT an advantage of a correctly specified structural model?
A) Structural models may help us to more accurately predict the effect that monetary policy has on economic activity.
B) A structural model provides more pieces of evidence about monetary policy's effect on economic activity.
C) Structural models may allow economists to more accurately predict the impact institutional changes have on the link between monetary policy and income.
D) A structural model imposes no restrictions on the way monetary policy affects the economy.
Correct Answer:
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