Econ Chapter 15 Flashcards
1
Q
Credible Monetary Policy
A
it is credible when the bank is expected to stick with its policy
2
Q
Market Confidence
A
The federal reserves most powerful tool- influence over expectation
3
Q
Disinflation
A
reduction rate in inflation
4
Q
Deflation
A
the reduction of prices in an economy
5
Q
With real shock the central bank must decide between
A
too low a growth rate
too high a rate of inflation
