The Taylor Principle states that central banks raise nominal rates by ________ than any rise in expected inflation so that real interest rates ________ when there is a rise in inflation

A) less; rise
B) more; fall
C) less; fall
D) more; rise


D

Economics

You might also like to view...

Scarcity

A. necessitates choice among consumer goods. B. of income renders purchase decisions interdependent. C. affects all consumer decisions. D. may involve forgoing the pleasure of one good in order to enjoy another. E. All of the above answers are correct.

Economics

If firms have to spend money on creating and protecting their monopoly power, they're going to buy:

A. no monopoly power. B. more monopoly power than if it were free. C. less monopoly power than if it were free. D. the same monopoly power as if it were free.

Economics

Refer to Figure 10.1. When each player plays his or her dominant strategy, society is poorer and the payoffs are smaller by ________ units than if each player had played the strategy with the ideal outcome for both the individual players and for the

group as a whole. A) 6 B) 12 C) 18 D) 30

Economics

Refer to Figure 17-2. Suppose the Fed used contractionary policy to push short-run equilibrium to point C. If the short-run equilibrium remained at point C long enough,

A) the economy would move back to point A. B) the economy would stay at point C in the long run. C) the short-run Phillips curve would shift down. D) the short-run Phillips curve would shift up.

Economics