If the Fed does not take into account the additional policy ...

[naturalchemist]

If the Fed does not take into account the additional policy channels available in an open economy, then ________ when conducting contractionary monetary policy.
 
  A) it is likely to decrease GDP too much and cause a recession
  B) it is likely to decrease GDP too little and inflation will persist
  C) it is likely to increase GDP too little and cause a recession
  D) it is likely to increase GDP too much and inflation will persist

Question 2

Refer to Table 1-4. What is Eva's marginal benefit if she decides to stay open for two hours instead of one hour?
 
  A) 25 B) 36 C) 60 D) 95

[lauravaras]

Answer to Question 1

A

Answer to Question 2

A

[naturalchemist]

Excellent

[momolu]

Gracias!