The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:

Assuming short-run sticky prices, the same monetary policy result may be achieved by targeting the money supply or the nominal rate of interest whenever:

a. the demand for money is stable. b. interest income is not taxable. c. changes in the supply of money are small and predictable. d. real income is constant.

The process by which investment banks guarantee a certain price to a firm issuing stocks or bonds is known as:

A) underwriting B) securitization C) proprietary trading D) microlending