Course Dashboard Quiz: Homework #10 | real interest rate formula W. W. Norton &

Question

Course Dashboard Quiz: Homework #10 | real interest rate formula W. W. Norton & Company | + LTX V |https://canvas.wisc.edu/courses/52818/quizzes/31355/take Find on pag change in No results Options Question 18 1 pts Which of the following changes will increase short-run output? Account O an increase in the parameter governing how aggressively monetary policy responds to inflation Dashboard O a decrease in the parameter governing how aggressively monetary policy responds to inflation Courses an increase in the target rate of inflation Calendar O a decrease in the target rate of inflation Inbox Screenshot saved The screenshot was added to your OneDrive. OneDrive Help No new data to save. Last checked at 8:39pmSubmit C 8:39 PM Type here to search 12/82017

Explanation / Answer

Ans:

An increase in the parameter governing how aggressively monetary policy responds to inflation.

When increase in money supply is used has a parameter of monetary policy for responding to inflation,this increases the demand and increases the short run output.

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