Description of this paper

Once monetary policy is dedicated to controlling the level of nominal GDP,

Description

solution


Question

Once monetary policy is dedicated to controlling the level of nominal GDP, then fiscal policy can be used to;A) choose the overall level of interest rates, with a high budget surplus implying a high level of interest rates.;B) choose the overall level of interest rates, with a high budget deficit implying a high level of interest rates.;C) control the level of inflation, with a high budget surplus implying a faster rate of inflation.;D) control the level of inflation, with a high budget deficit implying a faster rate of inflation.

 

Paper#24385 | Written in 18-Jul-2015

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