Solved

The Economy Shown Here Begins at a 0% Output Gap

Question 93

Multiple Choice

The economy shown here begins at a 0% output gap. A rise in the risk premium by 2% leads to:
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%.


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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions