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Author Question: Intermediate targeting the money supply is preferable if there is a(n) a. increase in the ... (Read 31 times)

tuffie

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on: Jun 30, 2018
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.


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BUTTHOL369

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

C

Answer to Question 2

B


tuffie

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Reply #2 on: Jun 30, 2018
Thank you


BUTTHOL369

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Reply #3 on: Jun 30, 2018
No problemo


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