The effect on the monetary policy reaction curve resulting from policymakers decreasing their inflation target would be:
A. the monetary policy reaction curve shifting to the right.
B. the monetary policy reaction curve shifting to the left.
C. a movement up the existing monetary policy reaction curve.
D. a movement down the existing monetary policy reaction curve.
Answer: B
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A key assumption made when a supply schedule is constructed is that
A. the only factors that matter in determining supply are price and quantity. B. firms only want to sell a certain amount of a product. C. supply is too important to be left to the marketplace. D. only price and quantity vary, all other determinants of supply are held constant. E. demand has a positive slope.
Why is economic development a contentious subject? Use one of the controversies mentioned in the chapter to illustrate why people may not agree on the answers
What will be an ideal response?
If the world price for a good is above a nation's pre-trade equilibrium price, then the nation
A) will export the good. B) will import the good. C) will neither export nor import the good. D) cannot gain from trade. E) Both C and D.
Suppose that the following headlines appeared in a newspaper. Which would most clearly represent a macroeconomic issue?
a. "Central Bank Raises Interest Rates" b. "Auto Dealership to Cut Prices" c. "Fanny's Freeze Dried Prunes to Lay Off 50 Workers" d. "United Workers Union to Strike April 15" e. "Brazilian Coffee Bean Crop Falls by 10 Percent"