A change in the equilibrium real interest rate may result from ________
A) an autonomous monetary policy
B) a change in the central bank's target inflation rate
C) a change in expected inflation
D) all of the above
E) none of the above
E
Economics
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In the classical model, what is the result of an increase in aggregate demand?
A) The price level increases, and real GDP remains constant. B) The price level decreases, and real GDP remains constant. C) Real GDP increases, and the price level remains constant. D) Real GDP decreases, and the price level remains constant.
Economics
If aggregate demand shifts outward, the result will be inflation
a. True b. False Indicate whether the statement is true or false
Economics