When demand for money is unstable,
A) a constant interest-rate policy will be superior to a policy of constant money-supply growth.
B) constant money-supply growth will be superior to a countercyclical monetary policy.
C) procyclical monetary policy would be needed to keep the interest rate constant.
D) Both A and C are correct.
A
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Which of the following conditions holds in an economically efficient competitive market equilibrium?
A) Producer and consumer surplus are exactly equal in size. B) There are no positive and no negative external effects from consumption and production. C) The deadweight loss is positive but at a minimum. D) The marginal benefit of the last unit produced and consumed is maximized.
If the average cost of producing a good is increasing as a firm produces more of the good, then which of the following must be TRUE?
A) AFC is falling. B) AVC is rising. C) MC > AVC. D) All of the above.