An economy that experiences a rise in the price level over two consecutive quarters necessarily experiences

Show graphically and explain why targeting an interest rate is preferable when money demand is unstable and the IS curve is stable

What will be an ideal response?

Moral hazard is the term used to describe the situation in which:

a. a consumer may buy a low-quality product. b. consumers receive a lower price because of a mistake on the part of the clerk. c. a consumer is being compensated for a defective product. d. people may change their behavior after they have signed a contract or agreed to a specified behavior. e. people want to change their behavior after they have signed a contract or agreed to a specified behavior but are unable to do so.