An activist central bank concerned with _________ would
A) inflation; lower real interest rates if inflation was above its target level.
B) inflation; raise real interest rates if inflation was below its target level.
C) unemployment; lower real interest rates if unemployment was above the natural rate.
D) unemployment; raise real interest rates if unemployment was above the natural rate.

Question

Quizplus · Accepted Answer

An activist central bank concerned with unemployment would lower real interest rates if unemployment was above the natural rate to stimulate economic activity and reduce unemployment.

An Activist Central Bank Concerned with _________ Would