Why would it ever be used in the short-run

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Reference no: EM13155478

If we know that expansionary monetary policy cannot create real economic growth in the long-run, why would it ever be used in the short-run?

A.) The case of cost-push (to combat wage pushes by workers).

B.) The case of demand-pull (pursuit of low unemployment targets)

C.) If the Fed felt obligated to pursue a rigid interest-rate target.

D.) All of the above

Please Include a paragraph as to your reasoning for coming to this conclusion.

Reference no: EM13155478

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