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- An increase in interest rates by the Federal Reserve is an example of _______ policy. Multiple Choice a. aggregation b. structural c. monetary d. fiscalWhy might policymakers be tempted to renege on an announcement they made earlier? In this situation, what is the advantage of a policy rule?Explain how policy makers can perfect their craft for the betterment of society
- Which of the following supports the argument for hands-off policy? A. Monetary policy does not impact the economy. B. Fiscal policy does not impact the economy. C. Fine-tuning is not compatible with our design capabilities. D. The economy has been fairly stable since World War II.Explain how Friedmanian approach is different from the New Classical theory?Which of the following is NOT a requirement in selecting a policy instrument? Question 4 options: a) controllability b) measurability c) flexibility d) predictability
- Explain the Friedmanian model of NAIRUHow can the theory of duality help policymakers regarding supply-side economics? Discuss.within the variable price fixed wage version of the keynesian model, analyze the effects of an increase in money demand (shift in liquidity preference) due to a loss confidence in stocks and bonds