AP® Macroeconomics

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Moderate

Expansionary Monetary Policy: Long Run

APMACR-NKIASM

In the long run, expansionary monetary policy includes which of the following?

A

Price level and money supply increase equally.

B

Price level and money supply decrease equally.

C

Nominal interest rate and real interest rate increase indefinitely.

D

Real output level increases indefinitely.

E

Real output level decreases indefinitely.