If the Fed Unexpectedly Shifts to a More Restrictive Monetary

question 92

Multiple Choice

If the Fed unexpectedly shifts to a more restrictive monetary policy, which of the following will most likely occur in the short run?

• A) a decrease in the real interest rate
• B) an increase in unemployment
• C) an increase in real GDP
• D) an increase in inflation

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Definitions:

Degrees of Freedom

The amount of separate values or quantities that can be attributed to a statistical distribution.

P Value

A statistical measure that helps determine the significance of results, indicating the probability of observing the results if the null hypothesis is true.

Null Hypothesis

An initial hypothesis that assumes no association or difference between groups or variables, tested against an alternative hypothesis.

Satisfaction with Police

The public's perception or feelings towards the effectiveness, fairness, and responsiveness of police services.