An inflation-prone country
A) gains from vesting its monetary policy decisions with a "conservative" central bank.
B) loses from vesting its monetary policy decisions with a "conservative" central bank.
C) gains from vesting its fiscal policy decisions with a "conservative" central bank.
D) loses from vesting its fiscal policy decisions with a "conservative" central bank.
E) remains constant when vesting its fiscal policy decisions with a "conservative" central bank.
A
You might also like to view...
An increase in the reserve requirement ________.
A. increases the money supply by increasing excess reserves and increasing the monetary multiplier B. decreases the money supply by increasing excess reserves and decreasing the monetary multiplier C. decreases the money supply by decreasing excess reserves and decreasing the monetary multiplier D. increases the money supply by decreasing excess reserves and decreasing the monetary multiplier
A period in which real GDP in the economy declines for at least six months is referred to as
A) a recession. B) living standards. C) long term growth. D) a positive fluctuation.
The aggregate supply curve shifts rightward when
A) the money wage rate falls. B) government purchases increase. C) potential GDP decreases. D) income taxes increase. E) the money wage rate rises.
Refer to Figure 3.1. If Marge and Homer both confess to the crime, what is Marge's payout?
A) 1 year B) 2 years C) 7 years D) 15 years