Question: 39. Why should monetary policy not respond to potential bubbles in asset prices? A. bubbles are hard to identify in real time B. monetary policy

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39. Why should monetary policy not respond to potential \"bubbles\" in asset prices? A. bubbles are hard to identify in real time B. monetary policy cannot. precisely target \"bubbles\" C. policymakers can use more rened tools like capital requirements D. all of the above 40. In the neeclassical consumption model with {j' = I, a high real interest rate R would imply that A- Cinday > Cfuiurc' 13- Ciodny : Cfmun' C' Cfoda'y

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