Author Question: If Md = 2,600 200r, the MPC = .75, G=100, and T = 100 . If the central bank wants the interest rate ... (Read 28 times)

kodithompson · **on:** Jun 30, 2018

If Md = 2,600 200r, the MPC = .75, G=100, and T = 100 . If the central bank wants the interest rate to be r=2, then the money supply must be

a. 5.
b. 400
c. 300
d. 3,000
e. not enough information was given.

Question 2

Monetarists and Keynesians agree that expectations are

a. backwards-looking.
b. rational.
c. unstable.
d. forwards-looking.