« previous next »

Author Question: A turning point is A) a change in policy. B) a peak or a trough. C) a boom or a recession. D) ... (Read 50 times)

roselinechinyere27m

  • Hero Member
  • *****
  • Posts: 557
on: Jun 30, 2018
A turning point is
 
  A) a change in policy.
  B) a peak or a trough.
  C) a boom or a recession.
  D) a zero deviation from trend.

Question 2

A key concern of monetary policy makers is credibility. In particular, that people believe that inflation will not deviate far from a rate consistent with a healthy macroeconomy. How might credibility affect the slope of the monetary policy curve?
 
  What will be an ideal response?


alvinum

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

Credibility implies that the monetary policy curve will be relatively flat. When inflation expectations rely more on confidence in monetary policy and less on the latest fluctuations, small changes in the real interest rate suffice to prevent changes in inflation from acquiring momentum.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The newest statin drug, rosuvastatin, has been called a superstatin because it appears to reduce LDL cholesterol to a greater degree than the other approved statin drugs.

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

Alcohol acts as a diuretic. Eight ounces of water is needed to metabolize just 1 ounce of alcohol.

Did you know?

The National Institutes of Health have supported research into acupuncture. This has shown that acupuncture significantly reduced pain associated with osteoarthritis of the knee, when used as a complement to conventional therapies.

Development of an atherosclerotic plaque that progressively narrows the lumen of an artery to the po Development of an atherosclerotic plaque that progressively narrows the lumen of an artery to the po
environmental policy environmental policy
Nancy Rubins, Pleasure Point. Nancy Rubins, Pleasure Point.
Geopolitical Change of 20th-Century Europe Geopolitical Change of 20th-Century Europe
If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ... If a graph has the following x-intercepts, which value of x is the instantaneous rate of change ...
Constructing a Three-Point Recombination Map Constructing a Three-Point Recombination Map
Video: Glycolysis - Introduction to ATP and the burning of sugar

For a complete list of videos, visit our video library