This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following is not an appropriate policy for a central bank to follow if the economy is ... (Read 171 times)

pragya sharda

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
Which of the following is not an appropriate policy for a central bank to follow if the economy is plagued with deflation?
 
  A) consistently pursuing policy to promote the credibility of the central bank
  B) explicitly and credibly targeting inflation
  C) using expansionary monetary policy to drive down interest rates
  D) increasing the target interest rate on overnight loans

Question 2

A price ceiling imposed below the equilibrium price ______.
 
  A. creates a black market in which the price might equal or exceed the equilibrium price
  B. creates a black market in which the price equals the price ceiling
  C. leads to increased search activity, which reduces the shortage of the good
  D. increases the demand for the good, which makes the shortage even larger


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nguyenhoanhat

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A The price in black markets lies between the ceiling price and the maximum price demanders will pay for the quantity pro-duced.


pragya sharda

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
Excellent

tandmlomax84

  • Member
  • Posts: 323
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Rotation Rotation–Moving a body part around a central axis. Rotation Rotation–Moving a body part around a central axis.
Jumper cable usage guide. Follow the same connections if using a portable jump box. Jumper cable usage guide. Follow the same connections if using a portable jump box.
Total allowable and actual catch, Grand Bank Atlantic Cod 1959 -2012 Total allowable and actual catch, Grand Bank Atlantic Cod 1959 -2012
Government in America: People, Politics, and Policy, AP Government in America: People, Politics, and Policy, AP
International Economics: Theory and Policy (10th Edition) International Economics: Theory and Policy (10th Edition)
A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ... A mother invests $9000 in a bank account at the time of her daughter's birth. The interest is ...
Video: Monohybrid crosses

For a complete list of videos, visit our video library