When Output Is Below Potential and the Policy Rate Has

question 10

Multiple Choice

When output is below potential and the policy rate has hit the floor of zero,the resulting fall in inflation leads to ________ real interest rates,which ________ output further,which causes inflation to fall further.

• A)lower;increase
• B)higher;depress
• C)higher;increase
• D)lower;depress

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Definitions:

Delegation

The assignment of responsibility and authority to someone else while retaining ultimate accountability.

Accountable

Being responsible for one's actions and the outcomes of those actions, often involving an obligation to report, explain, or justify them.

Good Management

Refers to the process of effectively planning, organizing, leading, and controlling resources and tasks to achieve organizational goals.

Learning

A process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences.