This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is not an appropriate policy for a central bank to follow if the economy is ... (Read 71 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
Which of the following is not an appropriate policy for a central bank to follow if the economy is plagued with deflation?
 
  A) consistently pursuing policy to promote the credibility of the central bank
  B) explicitly and credibly targeting inflation
  C) using expansionary monetary policy to drive down interest rates
  D) increasing the target interest rate on overnight loans

Question 2

A price ceiling imposed below the equilibrium price ______.
 
  A. creates a black market in which the price might equal or exceed the equilibrium price
  B. creates a black market in which the price equals the price ceiling
  C. leads to increased search activity, which reduces the shortage of the good
  D. increases the demand for the good, which makes the shortage even larger


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nguyenhoanhat

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A The price in black markets lies between the ceiling price and the maximum price demanders will pay for the quantity pro-duced.


pragya sharda

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
Wow, this really help

xthemafja

  • Member
  • Posts: 348
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

About 3.2 billion people, nearly half the world population, are at risk for malaria. In 2015, there are about 214 million malaria cases and an estimated 438,000 malaria deaths.

Did you know?

Limit intake of red meat and dairy products made with whole milk. Choose skim milk, low-fat or fat-free dairy products. Limit fried food. Use healthy oils when cooking.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

The United States in the Caribbean and Central America The United States in the Caribbean and Central America
The West Bank Challenge The West Bank Challenge
A Radio Telescope in Green Bank, West Virginia A Radio Telescope in Green Bank, West Virginia
Geese continued to follow a human around assuming their actual mothers Geese continued to follow a human around assuming their actual mothers
Gen Bio 2 - Central Dogma Gen Bio 2 - Central Dogma
Raman has a line of credit loan with the ICICI bank. The initial loan balance was $72000.00. ... Raman has a line of credit loan with the ICICI bank. The initial loan balance was $72000.00. ...
Video: Chemical Buffers - protein buffer, phosphate buffer system and bicarbonate buffer system

For a complete list of videos, visit our video library