Restrictive Monetary Policies Are Most Likely to Be Used by the Central

question 202

Multiple Choice

Restrictive monetary policies are most likely to be used by the central bank when an economy faces:

• A)a high rate of inflation.
• B)a high rate of unemployment.
• C)a recession.
• D)a negative GDP gap.

---

Definitions:

Lever Systems

Mechanical systems comprising a lever (rigid rod) that moves around a fixed point (fulcrum) to produce movement, utilized in describing bone and muscle actions.

Applied Force

A force that is applied to an object by a person or another object.

Fulcrum

The fixed point around which a lever pivots, enabling the lever to lift or move loads with less effort.

Load

In physiology, the force or resistance that a muscle has to overcome during contraction; in engineering, the weight or force that a structure supports.