Suppose that there is an increase in the demand for money. What is the appropriate monetary policy response in the New Keynesian sticky price model?
A) an increase in the interest rate target
B) no change in the interest rate target
C) a decrease in the interest rate target
D) an increase in government spending
B
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According to economic theory, state governments
A) will be biased toward chronic budget deficits. B) will act in the public interest. C) will act in the national interest. D) will do all of the above. E) will do none of the above.
An advantage of the proprietorship as a form of business organization is
A) its limited liability. B) its limited access to capital, thus reducing the possible size of debt. C) that it is easy to form. D) that it can sell bonds to the public.
All other things being equal, an increase in the supply of labor will lead to a fall in the wage.
Answer the following statement true (T) or false (F)
Which statement is true?
A. Currency accounts for about 75% of the U.S. money supply. B. The use of money requires a double coincidence of wants. C. M2 is over $8.5 trillion. D. None of the statements are true.