65) Monetary policy set according to a Taylor rule under the Keynesian assumption of sticky prices could be characterized as a compromise between the polar cases of (A)________ and (B)____________.
Answer is:
a constant interest rate policy rule; (B) a rule for the money supply to grow at the underlying trend growth rate of output
Related Macro Economics MCQ (GK Set-1) with Answers
Answer is:
A new equilibrium is reached at point B.
Answer is:
(A) flexible exchange rates; (B) exchange rate depreciating
Answer is:
(A) the exchange rate; (B) the exchange rate
Answer is: