Author Question: Which of the following models emphasizes the importance of credible, predictable government policies ... (Read 72 times)

chandani · **on:** Jun 30, 2018

Which of the following models emphasizes the importance of credible, predictable government policies for maintaining full employment with low inflation?
a. The monetarist model.
b. The Keynesian model.
c. The supply-side model.
d. The rational expectations model.

Question 2

If the nominal interest rate is 5 percent and there is no inflation, then the real interest rate:
a. exceeds 5 percent.
b. is less than 5 percent.
c. is 5 percent.
d. is zero.