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# A central bank's policy rate is considered expansionary if it is less than:

Question:

A
the sum of the long-term growth rate of real economic output and the target inflation rate.

Explaination

Monetary policy is said to be expansionary if the central bank's policy rate is less than the neutral interest rate, which is the sum of the long-term trend rate of real economic growth and the central bank's target inflation rate.

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