Which of the following is accurate? question 6 options: a) monetary policy is neutral in both the short run and the long run. b) though monetary policy is neutral in the long run, it may have effects on real variables in the short run. c) monetary policy has profound effects on real variables in both the short run and the long run. d) monetary policy has profound effects on real variables in the long run, but is neutral in the short run.

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?