Assume Individuals Consider Only the Medium Run Effects of Changes

question 10

Multiple Choice

Assume individuals consider only the medium run effects of changes in future macro variables when forming expectations of future output and future interest rates.Suppose individuals expect the central bank to pursue a monetary expansion in the future.Given this information,we know with certainty that

• A)current output and the current interest rate will both increase.
• B)current output will decrease.
• C)the current interest rate will decrease.
• D)the current output effects are ambiguous.
• E) current output will not change.

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Definitions:

Voir Dire

Voir dire is a legal process in which attorneys question prospective jurors to determine any biases or inability to serve impartially in a jury.

Objection

A legal term referring to a statement by an attorney during a trial, disagreeing with a method or evidence presented by the opposition.

In Limine

A legal term referring to a procedural motion made to the court, typically before a trial begins, to request that certain evidence be deemed inadmissible or not shown to the jury.

Alternate Jurors

Additional jurors selected in trials who replace any original jurors unable to complete their duty.