This topic contains a solution. Click here to go to the answer

Author Question: Intermediate targeting the money supply is preferable if there is a(n) a. increase in the ... (Read 29 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
Intermediate targeting the money supply is preferable if there is a(n)
 
  a. increase in the severity of supply shocks.
  b. unstable money demand function.
  c. low interest elasticity of money demand.
  d. difficulty in the measurement of money demand.
  e. none of the above.

Question 2

The time consistency problem implies that
 
  A) the central bank should not commit.
  B) central bank commitment is useful.
  C) discretion is better than tying your hands.
  D) there are problems we cannot solve.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

BUTTHOL369

  • Sr. Member
  • ****
  • Posts: 341
Answer to Question 1

C

Answer to Question 2

B





 

Did you know?

According to the American College of Allergy, Asthma & Immunology, more than 50 million Americans have some kind of food allergy. Food allergies affect between 4 and 6% of children, and 4% of adults, according to the CDC. The most common food allergies include shellfish, peanuts, walnuts, fish, eggs, milk, and soy.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

Thyroid conditions may make getting pregnant impossible.

For a complete list of videos, visit our video library