« 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 43 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?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

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.

Did you know?

Illicit drug use costs the United States approximately $181 billion every year.

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Examples of common forms of strabismus: (A) esotropia with the right eye turning inward and (B) exot Examples of common forms of strabismus: (A) esotropia with the right eye turning inward and (B) exot
Ulysses S. Grant poses at City Point, Virginia, during the siege of Petersburg. Ulysses S. Grant poses at City Point, Virginia, during the siege of Petersburg.
Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo Booker T. Washington in his office at Tuskegee Institute, 1900. Washington chose a policy of accommo
Albert Bierstadt, The Rocky Mountains, Lander's Peak, (detail). Albert Bierstadt, The Rocky Mountains, Lander's Peak, (detail).
Conventional oil reserves have passed peak production Conventional oil reserves have passed peak production
The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur The slope of the curve y = ax^3 - bx^2 + cx - 3 at x = 2 is 5. If the point of inflection of the cur
Video: Male Reproductive System - The gonadotropin releasing hormone

For a complete list of videos, visit our video library