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An Important Feature of the New Classical Model Is That

Question 26

Multiple Choice

An important feature of the new classical model is that an expansionary policy,such as an increase in the rate of money growth,can lead to a decline in aggregate output if the


A) public expects an even more expansionary policy than the one that is actually implemented.
B) policy comes as a surprise.
C) public expects a less expansionary policy than the one that is actually implemented.
D) policy is anticipated.

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