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Author Question: A central bank wishing to operate a tighter monetary policy might (Read 396 times)

dmcintosh

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Question 1

The structural budget deficit is the deficit
◦ associated with structural unemployment.
◦ associated with the economy operating below its full-employment level of production.
◦ that continues to exist when the economy is operating at a normal level of capacity utilisation.
◦ associated with a negative output gap.

Question 2

A central bank wishing to operate a tighter monetary policy might
◦ reduce interest rates but use open-market operations so as to reduce the money supply.
◦ raise interest rates and use open-market operations so as to reduce the money supply.
◦ promote investment in other countries by domestic firms.
◦ lower interest rates to encourage spending and discourage saving.


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Marked as best answer by dmcintosh on May 25, 2020

phuda

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dmcintosh

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Reply 2 on: May 25, 2020
Excellent


ultraflyy23

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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