This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Under a liquidity trap in the New Keynesian model, A) prices cannot be sticky. B) monetary ... (Read 92 times)

NguyenJ

  • Hero Member
  • *****
  • Posts: 516
on: Jun 30, 2018
Under a liquidity trap in the New Keynesian model,
 
  A) prices cannot be sticky.
  B) monetary policy is ineffective.
  C) the economy is always efficient.
  D) fiscal policy is ineffective.

Question 2

Changes in liquidity in the banking system affect ________.
 
  A) the nominal interest rate
  B) the real interest rate
  C) the federal funds rate
  D) all of the above
  E) none of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cuttiesgirl16

  • Sr. Member
  • ****
  • Posts: 345
Reply #1 on: Jun 30, 2018
Answer to Question 1

B

Answer to Question 2

D


NguyenJ

  • Hero Member
  • *****
  • Posts: 516
Reply #2 on: Jun 30, 2018
Thank you :)


cuttiesgirl16

  • Sr. Member
  • ****
  • Posts: 345
Reply #3 on: Jun 30, 2018
Happy to help you


« previous next »
 

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Noll's DNase-I digestion experiment, which verified the beads-on-a-string model of DNA compacti Noll's DNase-I digestion experiment, which verified the beads-on-a-string model of DNA compacti
Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
A Modern View: The Conveyor Belt Model A Modern View: The Conveyor Belt Model
The Malthusian Model The Malthusian Model
A three-dimensional model of transfer RNA A three-dimensional model of transfer RNA
The sliding-filament model The sliding-filament model
Video: Isovolumetric VC, Ventricular ejection, Isovolumetric & Passive ventricular filling

For a complete list of videos, visit our video library