Author Question: In the case where the LM schedule is relatively steep and the IS schedule is relatively flat, the ... (Read 9 times)

DyllonKazuo · **on:** Jun 30, 2018

In the case where the LM schedule is relatively steep and the IS schedule is relatively flat, the most effective policy would be a change in

a. money supply.
b. government expenditures.
c. government spending financed by a change in taxes.
d. taxes.

Question 2

Inflation targeting is one policy that attempts to deal with the problem of:

a. dollarization.
b. time inconsistency.
c. the tradeoff between inflation and unemployment.
d. the liquidity trap.
e. none of the above.