If the particular channels through which changes in the money supply affect aggregate income are diverse and continually changing,the best evidence of monetary policy's effect is likely to come from
A)reduced-form models.
B)structural models.
C)median-voter models.
D)indirect models.

Question

Quizplus · Accepted Answer

Reduced-form models are used to capture the overall relationship between variables without specifying the underlying structural channels, making them suitable for analyzing the effects of monetary policy when the channels are diverse and changing.

If the Particular Channels Through Which Changes in the Money