Author Question: If the Fed does not take into account the additional policy channels available in an open economy, ... (Read 11 times)

naturalchemist · **on:** Jun 29, 2018

If the Fed does not take into account the additional policy channels available in an open economy, then ________ when conducting contractionary monetary policy.

A) it is likely to decrease GDP too much and cause a recession
B) it is likely to decrease GDP too little and inflation will persist
C) it is likely to increase GDP too little and cause a recession
D) it is likely to increase GDP too much and inflation will persist

Question 2

Refer to Table 1-4. What is Eva's marginal benefit if she decides to stay open for two hours instead of one hour?

A) 25 B) 36 C) 60 D) 95