In response to an unanticipated tightening of monetary policy, output ________ at first, then ________ after about four months
A) rises; returns most of the way to its original value
B) falls; returns most of the way to its original value
C) remains roughly unchanged; rises significantly
D) remains roughly unchanged; falls significantly
D
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Hostess Brands is selling off its assets after liquidation. A potential buyer for the Twinkies brand has found that the total revenue will be $3 billion a year if the brand is managed well and $1 billion a year if the brand is managed poorly
There is .6 (or 60 percent) chance of managing the brand well and a .4 (or 40 percent) chance of managing the brand poorly. What is the expected total revenue? A) $0.4 billion B) $1.2 billion C) $1.8 billion D) $2.2 billion
If the price of orange juice rises 10%, and as a result the quantity demanded falls by 8%, the price elasticity of demand for orange juice is
A) -1.25. B) -80.0. C) -0.80. D) -10.0.