Everything else equal, if the growth rate of a country exceeds its sustainable rate, the central bank:
A) will keep interest rates low to keep the momentum.
B) will now identify this new rate as the sustainable rate and try to maintain it.
C) is likely to raise interest rates to slow the rate of growth.
D) is likely to lower the interest rate thinking a slowdown is coming to offset this boom.
Correct Answer:
Verified
Q23: Most economists agree that the target rate
Q24: Which of the following statements regarding growth
Q25: At a growth rate of 6% an
Q26: Over very long periods, U.S. real economic
Q27: Higher than expected inflation will increase the:
A)
Q29: The main problem from inflation as seen
Q30: Which of the following statements is not
Q31: In terms of economic growth, the central
Q32: Stable inflation implies:
A) that the rate of
Q33: If prices are not stable:
A) money becomes
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents