Match LIST-I with LIST-II

LIST-I

LIST-II

A.

Expansionary monetary policy under Adaptive Expectations.

I.

Policy is ineffective with only general inflation.

B.

Anticipated expansionary monetary policy under Rational Expectations.

II.

Policy is ineffective with only general deflation.

C.

Money wage cut during great depression.

III.

Policy is effective in the short run, although not in the long run.

D.

The presence of sizeable menu cost.

IV.

Policy is effective with no general inflation / deflation.

Choose the correct answer from the options given below:

Question

LIST-I		LIST-II
A.	Expansionary monetary policy under Adaptive Expectations.	I.	Policy is ineffective with only general inflation.
B.	Anticipated expansionary monetary policy under Rational Expectations.	II.	Policy is ineffective with only general deflation.
C.	Money wage cut during great depression.	III.	Policy is effective in the short run, although not in the long run.
D.	The presence of sizeable menu cost.	IV.	Policy is effective with no general inflation / deflation.