Multiple Choice
The economy shown here begins at a 0% output gap. A rise in the risk premium by 2% leads to:
A) a new real interest rate of 3%.
B) unexpected inflation of 1%.
C) a new output gap of 2%.
D) a new real interest rate of 0%.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q88: A financial shock is any change in:<br>A)aggregate
Q89: Define the Fed model.
Q90: In the IS-MP analysis in the Fed
Q91: The economy shown here begins at a
Q92: Holding everything else equal, exports rise in
Q94: You are an economic detective. Using the
Q95: The economy shown here begins at a
Q96: Once you have identified the point of
Q97: Once you have identified the output gap
Q98: Which of the following graphs correctly represents