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 125 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
YES! Correct, THANKS for helping me on my review

mcabuhat

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Medication errors are three times higher among children and infants than with adults.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Central Asian Shepherd Dog Central Asian Shepherd Dog
Major Degenerative Diseases of the Central Nervous System Major Degenerative Diseases of the Central Nervous System
Creating a Continental Economy Creating a Continental Economy
Migration and Global Economy Migration and Global Economy
Islam in Central Asia Islam in Central Asia
A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ... A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ...
Video: Blood Test Basics

For a complete list of videos, visit our video library