If the Central Bank Responds to Repeated Negative Supply Shocks

question 59

Multiple Choice

If the central bank responds to repeated negative supply shocks with monetary validations,the economy will be faced with

• A)a one-time increase in prices.
• B)a one-time decrease in prices.
• C)alternating periods of inflation and deflation.
• D)steady reductions in real output.
• E)continuous inflation.

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Definitions:

Stable Dividends

Dividends that are consistently paid out by a company at a steady rate, regardless of the company's earnings fluctuations.

Ex-Dividend Date

The date on which a stock trades without a declared dividend that has yet to be paid. Four days prior to the date of record.

Business Days

Workdays typically from Monday to Friday, excluding public holidays and weekends, used in the context of official and financial transactions.

Record Date

The specific date set by a company on which the shareholders must be on the company's books to be eligible to receive a dividend or vote.