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Author Question: With a contractionary monetary policy, as the output gap increases, the response of the central bank ... (Read 149 times)

joe

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on: Jun 30, 2018
With a contractionary monetary policy, as the output gap increases, the response of the central bank will tend to cause net capital outflows to ________ and cause the nominal exchange rate to ________.
 
  A) increase; increase
  B) increase; decrease
  C) decrease; increase
  D) decrease; decrease

Question 2

Critics of real business cycle theory doubt the plausibility of ________.
 
  A) intertemporal substitution
  B) negative productivity shocks
  C) adaptive expectations
  D) a trade-off between work and leisure


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asdfghjkl;

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


joe

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Reply #2 on: Jun 30, 2018
Thank you :)


asdfghjkl;

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Reply #3 on: Jun 30, 2018
Happy to help you


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