Economics 9708 · AS & A Level · Monetary policy

Monetary policy — practice question

An economy is functioning at its natural rate of unemployment. In monetarist theory, what impact will an unexpected rise in the money supply have on unemployment in the short run and in the long run?

  • Ano change / no change
  • Bno change / reduction
  • Creduction / no change
  • Dreduction / reduction

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