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

Author Question: If the economy is in a long-run equilibrium when the Federal Reserve decides that its inflation ... (Read 68 times)

tiffannnnyyyyyy

  • Hero Member
  • *****
  • Posts: 512
on: Jun 30, 2018
If the economy is in a long-run equilibrium when the Federal Reserve decides that its inflation target is too low and chooses to raise it, ________.
 
  A) it would likely conduct a tightening of monetary policy by raising the real interest rate for any given inflation rate
  B) it would likely conduct an easing of monetary policy by lowering the real interest rate for any given inflation rate
  C) it would likely conduct an easing of monetary policy where the real interest rate would increase due to the ensuing decrease in aggregate demand
  D) it would likely conduct a tightening of monetary policy where the real interest rate would increase due to the ensuing increase in aggregate demand
  E) none of the above

Question 2

Real business cycle theory was introduced by
 
  A) Milton Friedman and Robert Lucas.
  B) Milton Friedman and Anna Schwartz.
  C) Thomas Cooley and Gary Hansen.
  D) Finn Kydland and Edward Prescott.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jgranad15

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

B

Answer to Question 2

D


tiffannnnyyyyyy

  • Member
  • Posts: 512
Reply 2 on: Jun 30, 2018
Excellent

tanna.moeller

  • Member
  • Posts: 328
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

Did you know?

The most dangerous mercury compound, dimethyl mercury, is so toxic that even a few microliters spilled on the skin can cause death. Mercury has been shown to accumulate in higher amounts in the following types of fish than other types: swordfish, shark, mackerel, tilefish, crab, and tuna.

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Cellular changes associated with short-term and long-term memory in the sea slug. Cellular changes associated with short-term and long-term memory in the sea slug.
Apply the body wrap substance to the back with long, smooth strokes, covering the area thoroughly. Apply the body wrap substance to the back with long, smooth strokes, covering the area thoroughly.
How long does exercise affect blood sugar? How long does exercise affect blood sugar?
Long-term relationships, especially those who are married, having a child Long-term relationships, especially those who are married, having a child
A reciprocal translocation involving the long arms of chromosomes A reciprocal translocation involving the long arms of chromosomes
Video: Introduction to Autism

For a complete list of videos, visit our video library