Business, 19.05.2021 18:20 crystalclear99

In today's interconnected world, many central banks communicate regularly and frequently with the public about the state of the economy, the economic outlook, and the likely future course of monetary policy. Communication about the likely future course of monetary policy is known as "forward guidance.". If the central bank increases the reserve ratio, as the market has perfectly expected, which of the following will surely happen? a. The short run economic output will be deviating from its potential output
b. The prevailing price level of goods and services in that country will fall
c. The level of potential output will be shifting to the left
d. None of the following will happen for sure

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