Author Question: If the central bank cannot commit, then A) the leader of the central bank wants to quit. B) the ... (Read 115 times)

123654777 · **on:** Jun 30, 2018

If the central bank cannot commit, then

A) the leader of the central bank wants to quit.
B) the outcome is good for the macroeconomy.
C) the central bank cannot stop itself from exploiting the Phillips curve.
D) the Phillips curve is stable.

Question 2

The key reason that the bursting of the tech-stock bubble of the late 1990s had a mild impact on the macroeconomy is ________.

A) rapid intervention by the central bank averted economic catastrophe
B) the increase in tech-stock prices was driven by the economic fundamental of technological progress
C) the technology sector is a rather small portion of the aggregate economy
D) tech-stock prices had not been much influenced by credit availability