When Conducting Expansionary Monetary Policy, Central Banks Have to Keep

question 17

Multiple Choice

When conducting expansionary monetary policy, central banks have to keep in mind that

• A)there is a conflict between keeping inflation low and economic activity high
• B)unemployment can be lowered in the short run but at the cost of higher prices in the long run
• C)spending on durable consumption goods will probably not be significantly affected
• D)all of the above
• E)only A and B

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Definitions:

Median

The middle value in a data set when the numbers are arranged in ascending or descending order, or the mean of the two middle numbers if the data set has an even number of values.

Systolic Blood Pressure

The pressure in the arteries when the heart beats, pushing blood through the blood vessel network.

Normal Model

A probability distribution that is symmetrical around its mean, showing that data near the mean are more frequent in occurrence.

Summary Statistics

Statistical values that provide an overview or summary of a set of data, including measures like mean and standard deviation.