Statement 1 : Monetary policy affects GNP with a lag.
Statement 2 : The effects of a change in money supply are distributed over time rather than concentrated in one time period.
Choose the correct answer from the options given :
1
Statement 1 is true and Statement 2 is false
2
Statement 1 is false and Statement 2 is true
3
Both Statement 1 and 2 are false
4
Both Statement 1 and 2 are true