Which of the following is NOT a result of monetary policy?
A)aggregate demand is affected, leading to a change in nominal GDP
B)the level of potential GDP will change
C)spending on investment and durable consumption goods is affected
D)the rates of unemployment and inflation are affected in the short run
E)real interest rates will remain unaffected in the long run

Question

Which of the following is NOT a result of monetary policy?
A)aggregate demand is affected, leading to a change in nominal GDP
B)the level of potential GDP will change
C)spending on investment and durable consumption goods	 is affected
D)the rates of unemployment and inflation are affected in the short run
E)real interest rates will remain unaffected in the long run

Quizplus · Accepted Answer

Monetary policy does not change the level of potential GDP, which is determined by factors like technology and resources, not by monetary policy.

Which of the Following Is NOT a Result of Monetary