1. the five foundational theories of Monetary Policy: The Quantity Theory of Money, The Philips Curve,...

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1. the five foundational theories of Monetary Policy: The Quantity Theory of Money, The Philips Curve, The Natural Rate of Unemployment, The Rational Expectation Hypothesis, The Time Inconsistency Problem. Choose one foundational theory. Discuss the theory and its implication to Money Supply or Monetary Policy. 2. The Phillips curve suggests that monetary policy could be used to directly influence economic activity and output in the short run. The Quantity Theory of Money, on the other hand, states that in the long run, monetary policy can only influence the prices of goods and services in the economy and cannot influence the quantity of output or level of economic activity directly. In your own words explain how these two theories can be reconciled for their use in monetary policy. You may refer to the other foundational theories 1. the five foundational theories of Monetary Policy: The Quantity Theory of Money, The Philips Curve, The Natural Rate of Unemployment, The Rational Expectation Hypothesis, The Time Inconsistency Problem. Choose one foundational theory. Discuss the theory and its implication to Money Supply or Monetary Policy. 2. The Phillips curve suggests that monetary policy could be used to directly influence economic activity and output in the short run. The Quantity Theory of Money, on the other hand, states that in the long run, monetary policy can only influence the prices of goods and services in the economy and cannot influence the quantity of output or level of economic activity directly. In your own words explain how these two theories can be reconciled for their use in monetary policy. You may refer to the other foundational theories

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The Phillips curve is an economics principle which states that there is a direct relationship betwee... View the full answer