Which of the following is not an appropriate policy for a central bank to follow if the economy is plagued with deflation?
A) consistently pursuing policy to promote the credibility of the central bank
B) explicitly and credibly targeting inflation
C) using expansionary monetary policy to drive down interest rates
D) increasing the target interest rate on overnight loans
Question 2
A price ceiling imposed below the equilibrium price ______.
A. creates a black market in which the price might equal or exceed the equilibrium price
B. creates a black market in which the price equals the price ceiling
C. leads to increased search activity, which reduces the shortage of the good
D. increases the demand for the good, which makes the shortage even larger
Central bearded dragon, Pogona vitticeps
Central Asian Shepherd Dog
Bank
Example of Reconciling a Bank Statement Cont.
Migration and Global Economy