Research indicates that the more independent the central bank,
A) the smaller the budget deficit.
B) the higher the nominal interest rate.
C) the lower the rate of inflation.
D) the larger the time inconsistency problem in making policy.
E) the greater the likelihood of a "war of attrition" over policy.
C
Economics
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What is the equation of exchange? Suppose that real GDP and velocity are constant. In this case, what effect will an increase in the quantity of money have?
What will be an ideal response?
Economics
The law of demand states that, other things remaining the same, the higher the price of a good, the
A) smaller is the demand for the good. B) larger is the demand for the good. C) smaller is the quantity of the good demanded. D) larger is the quantity of the good demanded.
Economics