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Author Question: According to new classical economists, if the Fed ________ the money supply after it announces it ... (Read 25 times)

mckennatimberlake

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Question 1

According to the new classical theory, economic policies are effective


◦ only if they are unanticipated.
◦ only if they are anticipated.
◦ only if they are formed with rational expectations.
◦ only if they are expansionary in nature.

Question 2

According to new classical economists, if the Fed ________ the money supply after it announces it will do so, output remains constant and the price level ________.


◦ increases; decreases
◦ decreases; increases
◦ decreases; remains constant
◦ decreases; decreases


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Marked as best answer by mckennatimberlake on Apr 19, 2019

Harbringer

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mckennatimberlake

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Reply 2 on: Apr 19, 2019
Excellent


alvinum

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Reply 3 on: Yesterday
:D TYSM

 

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