A credit crunch will
A) Raise borrowing costs to businesses and households relative to benchmark interest rates
B) Tend to reduce aggregate demand
C) Cause a negative output gap (if output had been at potential)
D) All of the above
Correct Answer:
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Q2: A main reason why the Fed introduced
Q3: A positive aggregate demand shock affecting an
Q4: A negative aggregate supply shock will
A) Cause
Q5: A persistent positive aggregate supply shock, say
Q6: The economy can move and stay off
Q7: When news about the economy points to
Q8: Central bank credibility
A) Is irrelevant to the
Q9: Having a single monetary policy goal of
Q10: If output were at potential and inflation
Q11: Advocates of a money stock rule have
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