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Question
Which of the following statements is true?a. Both expansionary and contractionary monetary policy has the drawback of increasing unemployment.
b. Both expansionary and contractionary monetary policy has the drawback of increasing inflation.
c. Expansionary monetary policy has the drawback of increasing unemployment, while contractionary monetary policy has the drawback of increasing inflation.
d. Expansionary monetary policy has the drawback of increasing inflation, while contractionary monetary policy has the drawback of increasing unemployment.
Answer
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