An Increase in the Reserve Supply

question 181

Multiple Choice

An increase in the reserve supply

• A)will result in inflation if the unemployment rate is high.
• B)causes interest rates to rise.
• C)shifts the aggregate demand curve inward.
• D)will probably cause inflation if the economy is at potential GDP.

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Definitions:

Major Phobic

Not a standard psychiatric term; may refer to severe phobic disorders, which are intense, irrational fears of specific objects or situations.

Cyclothymic Episode

A period characterized by mood swings less severe than those in bipolar disorder, ranging from mild depression to emotional highs.

Panic Attacks

Sudden episodes of intense fear or acute discomfort, accompanied by physical symptoms such as palpitations, sweating, trembling, or feelings of doom.

Obsessive-Compulsive Disorder

A mental health disorder where a person has uncontrollable, reoccurring thoughts (obsessions) and behaviors (compulsions) they feel the urge to repeat over and over.