Credit-driven bubbles ________. A) occur exclusively within ...

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Credit-driven bubbles ________.
 
  A) occur exclusively within the financial sector
  B) are more likely to be identified by central bank officials than by market participants
  C) are best contained with a policy of high real interest rates
  D) are harder to identify than expectations-driven bubbles

Question 2

Figure 5.1 provides support for the Fisher effect, by ________.
 
  A) displaying a positive relationship between the inflation rate and the nominal interest rate
  B) showing how developed economies like the U.S. and Japan have less inflation than economies like Turkey and Indonesia
  C) focusing on short-run fluctuations, rather than long run averages
  D) plotting observed, rather than expected inflation
  E) showing that output is unaffected by changes in the money supply

[scikid]

Answer to Question 1

B

Answer to Question 2

A

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Thank you

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