Multiple Choice
In the real business cycle model,a persistent increase in total factor productivity
A) has no effect on the real interest rate.
B) unambiguously increases the real interest rate.
C) unambiguously decreases the real interest rate.
D) has a theoretically ambiguous effect on the real interest rate.
Correct Answer:
Verified
Correct Answer:
Verified
Q2: One potential weakness of the coordination failure
Q3: If an economy is stuck in a
Q4: The appropriate monetary policy response to a
Q5: According to real business cycle theorists,an increase
Q6: In the coordination failure model,increasing returns to
Q7: What is the appropriate monetary policy response
Q8: A reduction in financial liquidity,producing deficient liquid
Q9: A government policy that is consistent with
Q10: The coordination failure model is based on
Q11: An important critique of real business cycle