Author Question: With a contractionary monetary policy, as the output gap increases, the response of the central bank ... (Read 152 times)

joe · **on:** Jun 30, 2018

With a contractionary monetary policy, as the output gap increases, the response of the central bank will tend to cause net capital outflows to ________ and cause the nominal exchange rate to ________.

A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Question 2

Critics of real business cycle theory doubt the plausibility of ________.

A) intertemporal substitution
B) negative productivity shocks
C) adaptive expectations
D) a trade-off between work and leisure

asdfghjkl; · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

C

Answer to Question 2

B

joe · **Reply #2 on:** Jun 30, 2018

Thank you

asdfghjkl; · **Reply #3 on:** Jun 30, 2018

Happy to help you

Author Question: With a contractionary monetary policy, as the output gap increases, the response of the central bank ... (Read 152 times)

joe

With a contractionary monetary policy, as the output gap increases, the response of the central bank ...

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With a contractionary monetary policy, as the output gap increases, the response of the central bank ...

joe

With a contractionary monetary policy, as the output gap increases, the response of the central bank ...

asdfghjkl;

With a contractionary monetary policy, as the output gap increases, the response of the central bank ...