Multiple Choice
In the Basic New Keynesian Model, an unconventional policy that works in a liquidity trap is
A) a money supply increase.
B) a reduction in the nominal interest rate.
C) an increase in the nominal interest rate.
D) forward guidance.
E) a reduction in the real interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: In the Basic New Keynesian model, if
Q2: The Phillips curve had a recent resurgence
Q3: There are costs associated with<br>A) uncharted inflation.<br>B)
Q5: In the New Keynesian Rational Expectations model
Q6: In the Basic New Keynesian model, there
Q7: Neo-Fisherism<br>A) is widely accepted.<br>B) was introduced Keynes.<br>C)
Q8: In 1981, inflation in Canada reached<br>A) 20%.<br>B)
Q9: In the New Keynesian Rational Expectations model
Q10: In practice, the Bank of Canada<br>A) does
Q11: The Phillips curve was first noticed in