In the New Keynesian View, Expected Changes in Monetary Policy

question 60

Multiple Choice

In the new Keynesian view, expected changes in monetary policy can affect output in the short run because

• A)agents do not have rational expectations.
• B)prices are sticky.
• C)business firms rarely pay attention to policy announcements.
• D)they directly increase the funds available for businesses and consumers to spend.

Evaluate the impacts and limitations of government involvement in addressing market failures.

Understand the implications of public officials and voters' incentives on legislative processes.

Discern the challenges associated with using voting as a decision-making mechanism in public choice theory.

Understand the concept and legal implications of intentional misrepresentation and the available remedies.

---

Definitions:

Dual Agency

A situation in real estate where an agent or broker represents both the buyer and the seller in the same transaction, leading to potential conflicts of interest.

Conflict of Interest

A situation in which an individual's personal interests could potentially interfere with their professional duties or responsibilities.

Safe Working Conditions

Work environments that possess adequate safety measures to prevent accidents and reduce the risk of injury or harm to employees.

Duty of Loyalty

An obligation of fiduciaries to act in the best interest of the beneficiary or entity they serve, avoiding conflicts of interest.