Monetary policy credibility has the benefit of ________.
A) stabilizing inflation in the short run when faced with positive demand shocks
B) stabilizing economic activity in the short run when faced with positive demand shocks
C) transmitting the effect of aggregate demand shocks onto short-run aggregate supply
D) enhancing the job opportunities of Federal Reserve officials after they leave the central bank
Correct Answer:
Verified
Q42: How are rule-based policies similar to adaptive
Q43: The immediate objective of a nominal anchor
Q44: If the public believes the commitment to
Q45: The "anchor" that sustains the credibility of
Q46: If the public believes the commitment to
Q48: In 1973,1979 and 2007,the U.S.economy was hit
Q49: In the equation for the short-run aggregate
Q50: For the most part,central bank credibility,or lack
Q51: The strength of the movement in the
Q52: If the public believes that the commitment
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