If the central bank targets the interest rate, it a. must decrease in
If the central bank targets the interest rate, it
a. must decrease interest rates in response to an increase in money demand.
b. rules out the possibility of runaway inflation.
b. can lead to runaway inflation if maintained too rigidly.
d. Both a and c
e. Both b and c
ANSWER
B
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.