Multiple Choice
Lucas argues that when policies change,expectations will change thereby
A) changing the relationships in econometric models.
B) causing the government to abandon its discretionary stance.
C) forcing the Fed to keep its deliberations secret.
D) making it easier to predict the effects of policy changes.
Correct Answer:
Verified
Correct Answer:
Verified
Q17: Potential advantages of nominal GDP targeting include<br>A)it
Q18: A rise in short-term interest rates that
Q19: The Lucas critique indicates that<br>A)advocates of discretionary
Q20: Whether one views the discretionary policies of
Q21: According to the Lucas critique,if past increases
Q23: Suppose that there is a negative aggregate
Q24: Suppose that there is a positive aggregate
Q25: Suppose that there is a positive aggregate
Q26: Potential weaknesses of nominal GDP targeting include<br>A)it
Q27: Approaches to establishing central bank credibility include<br>A)inflation