If monetary policymakers fear a recession resulting from increased pessimism on the part of business people, and they want to avoid the recession, they would:
A. likely lower their target rate for inflation.
B. shift the monetary policy reaction curve to the right.
C. shift the monetary policy reaction curve to the left.
D. encourage fiscal policymakers to act.
Answer: B
Economics
You might also like to view...
The term human capital refers to
A) labor resources used to make capital equipment. B) buildings and machinery. C) people's knowledge and skill. D) entrepreneurship and risk-taking.
Economics
If the cross elasticity of demand between coffee and tea is positive, an increase in the price of tea will shift the demand curve for
A) tea rightward. B) tea leftward. C) coffee rightward. D) coffee leftward.
Economics