Problem
1. What is the equilibrium real interest rate? How does it influence the interest rate decisions of Federal Reserve policy makers?
2. Is stabilization policy more likely to be conducted with monetary policy or fiscal policy? Why?
3. Why does the divine coincidence simplify the job of policy making? In what situations will it prevail? Why?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.