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PLEASE HELP! 1. Expansionary policies adopted to support elected officials in the next election can create a 2. Will the effect on unemployment be large
PLEASE HELP!
1. Expansionary policies adopted to support elected officials in the next election can create a 2. Will the effect on unemployment be large or small when the central bank attempts to reduce inflation if its policy is not credible? 3. What policy has the Federal Reserve adopted to establish credibility? 4. With an inflation target of 2%, at the zero lower bound, the real interest rate is 5. If a central bank targets a path for the price level that grows at 2% per year, and inflation falls to 0% in a year, approximately what rate of inflation is needed in the next year to return to the target path? 6. What maturity of interest rates have the greatest effect on aggregate demand? 7. In addition to bond prices, changes in interest rates affect what other asset prices? and 8. Changes in asset prices change wealth that affects which component of aggregate spending? 9. Defaults and bankruptcies reduce the value of which reduces bank lending. 10. In the Great Depression, countries with the worst contractions suffered Step by Step Solution
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