Author Question: A reduction in financial liquidity, producing deficient liquid assets A) shifts the output supply ... (Read 101 times)

chads108 · **on:** Jun 30, 2018

A reduction in financial liquidity, producing deficient liquid assets

A) shifts the output supply curve to the right.
B) shifts the output demand curve to the right.
C) shifts the output supply curve to the left.
D) shifts the output demand curve to the left.

Question 2

Central bank credibility may be established by ________.

A) the appointment of individuals to the Fed with a strong aversion to inflation
B) quicker responses to negative aggregate supply shocks
C) greater coordination between monetary and fiscal policy
D) the appointment of central bankers who are hawkish on defense