Author Question: When monetary policies result in a worsening of economic performance, the least likely explanation ... (Read 34 times)

joe · **on:** Jun 30, 2018

When monetary policies result in a worsening of economic performance, the least likely explanation is ________.

A) a political business cycle
B) changes in one or more key structural parameters of the economy
C) a policy-induced change in the expectations and behaviors of households and businesses
D) faulty interpretation of incomplete and ambiguous economic data

Question 2

An increase in the money supply in the Friedman-Lucas money surprise model

A) reduces aggregate output, raises the price level, and reduces the real interest rate.
B) increases aggregate output, reduces the price level, and reduces the real interest rate.
C) increases aggregate output, raises the price level, and reduces the real interest rate.
D) reduces aggregate output, raises the price level, and raises the real interest rate.