Author Question: By engaging in quantitative easing, the Fed is attempting to reduce the ________, causing the MP ... (Read 89 times)

burchfield96 · **on:** Jun 30, 2018

By engaging in quantitative easing, the Fed is attempting to reduce the ________, causing the MP curve to ________.

A) term premium and the real interest rate; shift down
B) unemployment rate and the inflation rate; shift down
C) short-term nominal and real interest rates; shift up
D) federal funds rate; shift up

Question 2

In real business cycle models, a change in willingness to work ________.

A) is associated with productivity shocks
B) causes a shift of the aggregate demand curve
C) would violate the market-clearing assumption
D) has no effect on potential output