According to the Keynesian model, a decline in the expected price level
a. will increase the inflation rate a central bank must generate to achieve a target level of unemployment.
b. will decrease the inflation rate a central bank must generate to achieve a target level of unemployment.
c. will not affect the inflation rate a central bank must generate to achieve a target level of unemployment.
d. will not impact the effectiveness of monetary policy.
B
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Contractionary monetary policy on the part of the Fed results in
A) an increase in the money supply, a decrease in interest rates, and an increase in GDP. B) a decrease in the money supply, an increase in interest rates, and a decrease in GDP. C) a decrease in the money supply, a decrease in interest rates, and a decrease in GDP. D) an increase in the money supply, an increase in interest rates, and an increase in GDP.
Economists Chamberlain and Prante of the Tax Foundation note that if the U.S. population in 2004 were grouped into quintiles by income:
A. Only the top income quintile paid more in taxes than the benefits they received from government spending B. The top two income quintiles paid more in taxes than the benefits they received from government spending C. The top three income quintiles paid more in taxes than the benefits they received from government spending D. Only the bottom income quintile paid less in taxes than the benefits they received from government spending