Suppose the central bank announces that it will permanently increase the inflation rate and there is central bank credibility
With adaptive expectations, expectations of inflation will adjust ________, and with rational expectations, expectations of inflation adjust ________. A) slowly; slowly
B) slowly; immediately
C) immediately; immediately
D) immediately; slowly
B
Economics
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Economists Eichengreen and Hausmann coined the phrase original sin to describe developing countries inability to borrow in their own currencies. Where do they believe that this inability comes from? What are other beliefs on this topic?
What will be an ideal response?
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If government did not individual rights, the efficiency of a market economy_____
a. would decline b. would be about the same c. would increase d. could possibly decline or possibly increase
Economics