If prices are inflexible, monetary policy: Multiple Choice affects real income but not nominal income. affects both nominal and real income. does not affect real or nominal income. affects nominal income but not real income.

Respuesta :

Answer:

Option b (affects both nominal and real income) is the correct answer.

Explanation:

  • Monetary policy seems to be the mechanism through which a contractionary economic legislative power, usually the bank but rather monetary system panel, controls whether another extremely minimum-term borrowing costs or perhaps the money supply, often setting certain inflation or monthly payment to maintain market stability maintaining generalized commodity trust.
  • Monetary policies aren't exclusive to monetary policies, which are enforced by government international trade and economic growth.

The alternatives given should not be in relation to the case in question. So option b seems to be the right one.