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

Author Question: According to real business cycle models, A) the economy is normally at potential GDP. B) ... (Read 55 times)

lilldybug07

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
According to real business cycle models,
 
  A) the economy is normally at potential GDP.
  B) unexpected changes in monetary policy are the major source of fluctuations in real GDP.
  C) the long-run Phillips curve is negatively sloped.
  D) the economy is normally operating below the natural rate of unemployment.

Question 2

You agree to lend 1,000 for one year at a nominal interest rate of 10. You anticipate that inflation will be 4 over that year. If inflation is instead 3 over that year, which of the following is true?
 
  A) The person who borrowed the 1,000 will be worse off as a result of the unanticipated decrease in inflation.
  B) The real interest rate you earn on your money will be negative.
  C) The purchasing power of the money that will be repaid to you will be lower than you expected.
  D) The real interest rate you earn on your money is lower than you expected.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kswal303

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 29, 2018
Answer to Question 1

A

Answer to Question 2

A


lilldybug07

  • Member
  • Posts: 546
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

dantucker

  • Member
  • Posts: 346
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

This wheel presentation is helpful for the detection of potential amphipathic helices This wheel presentation is helpful for the detection of potential amphipathic helices
The calvin cycle The calvin cycle
Specific Drugs and their Potential for Dependence Specific Drugs and their Potential for Dependence
Private Practice Massage Therapy Business Plan Cont Private Practice Massage Therapy Business Plan Cont
Action Potential Propagation Through the Heart Action Potential Propagation Through the Heart
Cardiac cycle Cardiac cycle
Video: Non-specific disease resistance mechanisms & Skin's defense barriers

For a complete list of videos, visit our video library