Real shocks to one area of the economy:
A. can be amplified and transmitted to other areas of the economy.
B. generally remain isolated to that area of the economy.
C. can cause nominal shocks to other areas of the economy.
D. always become weaker as they spread to other areas of the economy.
Ans: A. can be amplified and transmitted to other areas of the economy.
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a. True b. False Indicate whether the statement is true or false
Suppose that the Federal Reserve Open Market Committee adheres to the ideas expressed by ________. If the economy moves into a recession, the Fed would recommend that the federal funds target rate decrease as long as the inflation rate did not rise above
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