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Author Question: To deal with the time inconsistency problem associated with monetary policy, some have suggested ... (Read 63 times)

CORALGRILL2014

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on: Jun 30, 2018
To deal with the time inconsistency problem associated with monetary policy, some have suggested that
 
  A) the head of the central bank be chosen by election.
  B) the central bank implement expansionary monetary policy prior to election years.
  C) elected officials should have a direct influence on the implementation of monetary policy.
  D) all of the above
  E) none of the above

Question 2

Explain what factors determine how much investment is required to maintain a given level of capital per effective worker.
 
  What will be an ideal response?


samiel-sayed

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Reply #1 on: Jun 30, 2018
Answer to Question 1

E

Answer to Question 2

There are three factors that will affect the amount of required investment: depreciation, population growth, and rate of technological progress.


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