Multiple Choice
Which of the following is a possible cure for ongoing inflation?
A) The Fed could pursue anti-cyclical monetary policy.
B) The Fed could increase money supply whenever the AD curve shifts to the right.
C) The Fed could maintain a constant interest rate target regardless of economic circumstances.
D) The Fed could always try to keep the unemployment rate below the natural rate.
E) The Fed could pursue anti-cyclical fiscal policy.
Correct Answer:

Verified
Correct Answer:
Verified
Q9: According to the Taylor rule,<br>A) the Fed
Q10: In the long run,monetary policy can<br>A) change
Q11: The Fed does not try to reduce
Q12: If unemployment is below the natural rate,GDP
Q13: The long-run Phillips curve is downward-sloping.
Q15: If the Fed believes the natural rate
Q16: Which of the following is the Fed's
Q17: Deflation can render monetary policy powerless.
Q18: Which of the following does the long-run
Q19: If the inflation rate is 2 percent