Which of the Following Statements Is True About Monetary Policy

question 114

Multiple Choice

Which of the following statements is true about monetary policy and the unemployment rate?

• A) Expansionary monetary policy can decrease the unemployment rate in the short run and in the long run.
• B) Expansionary monetary policy has no effect on the unemployment rate in the short run or in the long run.
• C) Contractionary monetary policy can decrease the unemployment rate in the short run but has no effect on the unemployment rate in the long run.
• D) Contractionary monetary policy has no effect on the unemployment rate in the short run or in the long run.
• E) Expansionary monetary policy can decrease the unemployment rate in the short run but has no effect on the unemployment rate in the long run.

---

Definitions:

Dissociation

A psychological condition wherein a person experiences a disconnection and lack of continuity between thoughts, memories, surroundings, actions, and identity.

Repression

A defense mechanism where unwanted memories, thoughts, or desires are excluded from conscious awareness.

Proactive Interference

The effect where older information prevents the recall of newer information.

Repressed Memories

Memories involuntarily suppressed because they are linked to intense stress or trauma.