(SOLVED) Both activists and nonactivists make good

points for their respective

Both activists and nonactivists make good points for their respective Both activists and
nonactivists make good points for their respective positions. Do you think activists could say
anything to nonactivists to convince them to accept the activist position, and vice versa? If so,
what is it that they would say? […]

Suppose it were proved that liquidity traps are not real Suppose it were proved that liquidity
traps are not real and that investment is not interest insensitive. Would this be enough to
disprove the Keynesian claim that expansionary monetary policy is not always effective at
changing Real GDP? Why or […]

Bond prices and the interest rate are inversely related 1 Explain Bond prices and the interest
rate are inversely related. 1. Explain how an increase in the money supply will affect bond prices
and interest rates. 2. Explain how a decrease in the money supply will affect bond prices and […]

Five nonactivist monetary proposals include a constant money growth rate rule a Five
nonactivist monetary proposals include a constant-money-growth rate rule, a predetermined-
money-growth-rate rule, the Taylor rule, inflation targeting, and nominal GDP targeting 1.
Explain why some economists advocate using a constant-money-growth rate rule. 2. Explain
why some nonactivists prefer […]

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Activists argue that monetary policy should be deliberately used to Activists argue that monetary
policy should be deliberately used to smooth out the business cycle, while nonactivists argue
against discretionary monetary policy. 1. List the reasons why activists advocate discretionary
monetary policy. 2. List the reasons why nonactivists advocate rules-based […]

1 Graphically show how expansionary monetary policy can be used 1. Graphically show how
expansionary monetary policy can be used to eliminate a recessionary gap. 2. Graphically show
how contractionary monetary policy can be used to eliminate an inflationary gap. 3. Explain why
Keynesians are more likely to advocate expansionary […]

Monetarists believe that there is a direct effect between the Monetarists believe that there is a
direct effect between the money market and the product market. 1. State the monetarist
transmission mechanism. 2. Graphically show how monetarists believe an increase in the
money supply will operate. Monetarists believe that there […]

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