Evidence seems to point out that just before recessions interest rates rose. Why would monetary policymakers choose to cause recessions?
What will be an ideal response?
The primary answer is that they were concerned about inflation and that they sought to slow the economy down by raising real interest rates. This reflects the tough choices that monetary policymakers face when presented with the challenge to reduce high rates of inflation.
Economics
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A competitive market where firms currently earn positive economic profit will see firms exit the industry from increased competition
a. true b. false
Economics
A political equilibrium can never be reached without voters, firms, politicians and ________
A) bureaucrats B) public costs C) indifference curves D) market prices
Economics