Consider a Central Bank That Chooses to Implement Its Monetary

question 93

Multiple Choice

Consider a central bank that chooses to implement its monetary policy by expanding the money supply by a fixed percentage amount in every year. One important disadvantage with this approach to monetary policy is that it may

• A)lead to stable growth of national income.
• B)be difficult to achieve.
• C)lead to sustained inflation.
• D)be destabilizing if the demand for money is unstable.
• E)create a recessionary output gap.

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Definitions:

Child Care

The care and supervision of a child or multiple children, ranging from a few weeks to several years of age.

Gender Typing

the process by which a child becomes aware of their gender and thus begins to enact the roles and behaviors that society deems appropriate for that gender.

Social Modesty

The behavior of minimizing one's own accomplishments or qualities in a social context to avoid offending or overshadowing others.

Secondary Sex Characteristics

Physical features that differentiate the sexes but are not directly involved in reproduction, such as breast development or facial hair.