sallydally3030 sallydally3030
  • 17-08-2020
  • Business
contestada

__________ prices in the short run allow the Federal Reserve to control the real interest rate.

a. Constant
b. Flexible
c. Sticky
d. Stable

Respuesta :

topeadeniran2 topeadeniran2
  • 19-08-2020

Answer: sticky

Explanation:

Sticky prices in the short run allow the Federal Reserve to control the real interest rate. Due to the sticky prices, the Federal Reserve will be able to control the short-term interest rates.

This can be done by adjusting inflation due to the fact that prices of goods are sticky and doesn't change immediately.

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