Principles of Macroeconomics by Libby Rittenberg & Timothy Tregarthen
Author:Libby Rittenberg & Timothy Tregarthen
Language: eng
Format: epub
Tags: Social Science
Publisher: Web Books Publishing
Published: 2010-03-10T16:00:00+00:00
Answers to Try It! Problems
Inflationary gap
Contractionary
Open-market sales of bonds
The price of bonds would fall. The interest rate and the exchange rate would rise.
Investment and net exports would fall.
The aggregate demand curve would shift to the left.
11.2. Problems and Controversies of Monetary Policy
Learning Objectives
Explain the three kinds of lags that can influence the effectiveness of monetary policy.
Identify the macroeconomic targets at which the Fed can aim in managing the economy, and discuss the difficulties inherent in using each of them as a target.
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