Compared to the Baseline, the Short-Run Effect of a Monetary

question 65

Multiple Choice

Compared to the baseline, the short-run effect of a monetary policy change to lower inflation is for

• A)consumption and net exports to decline, while investment stays constant.
• B)consumption, investment, net exports, and government purchases to decline.
• C)consumption, investment, and net exports to decline.
• D)consumption and investment to decline while net exports increase.
• E)consumption and net exports to increase while investment falls.

---

Definitions:

Laptop Computers

Portable personal computers with a clamshell form factor, suitable for mobile use and equipped with a screen and keyboard.

Personal Computer

A general-purpose computer designed for use by an individual, typically consisting of a monitor, keyboard, mouse, and CPU.

Defragment And Optimize Drives

A process that rearranges fragmented data on a disk drive to improve efficiency and speed up access to files.

Hard Drive

A data storage device used for storing and retrieving digital information, using rapidly rotating disks coated with magnetic material.