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 36 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?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

Serum cholesterol testing in adults is recommended every 1 to 5 years. People with diabetes and a family history of high cholesterol should be tested even more frequently.

Did you know?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

Bohr Model of Hydrogen Atom Bohr Model of Hydrogen Atom
Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896 Wheat and Cotton Prices and Consumer Price Indexes, 1865–1896
A skeletal model of the ice lattice A skeletal model of the ice lattice
A space-filling model of DNA. A space-filling model of DNA.
The sliding filament model of muscle contraction The sliding filament model of muscle contraction
Ecosystem goods and services and monetary values Ecosystem goods and services and monetary values
Video: Gastroesophageal Reflux Disease (GERD)

For a complete list of videos, visit our video library