The New Keynesian transmission mechanism for monetary policy is characterized by
A) helicopter drops of money.
B) money having an impact on the real interest rate.
C) banks using money injections for business loans.
D) the government buying goods with fresh money.
B
Economics
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The inefficiencies associated with dead capital can
A) lead to increased consumption. B) increase the amount of investment as businesses look for more technologically advanced capital. C) lead to more economic freedom as firms try to get rid of the inefficient capital. D) reduce the rate of return on investment.
Economics
In the above figure, which movement illustrates the impact of a falling price level and a constant money wage rate?
A) E to I B) E to F C) E to J D) E to H
Economics