Solved

If a Central Bank Had to Give Up Its Discretion

Question 26

Multiple Choice

If a central bank had to give up its discretion and follow a rule that required it to keep inflation low,


A) the short-run Phillips curve would shift up.
B) the short-run Phillips curve would shift down.
C) the long-run Phillips curve would shift right.
D) the long-run Phillips curve would shift left.

Correct Answer:

verifed

Verified

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

Related Questions

Q20: Edward Prescott and Finn Kydland won the

Q21: A 1977 amendment to the Federal Reserve

Q23: Assume a central bank follows a rule

Q24: Suppose that the central bank is required

Q25: Assume a central bank follows a rule

Q27: When the Federal Open Market Committee meets

Q28: The Federal Open Market Committee meets about<br>A)every

Q29: According to the political business cycle theory,if

Q30: Suppose that the central bank must follow

Q44: If people in countries that have had