Which of the Following Is True

question 90

Multiple Choice

Which of the following is true?

• A) Monetary policy influences long-term real interest rates more than short-term interest rates.
• B) Short-term interest rates are primarily determined by real factors and the expected inflation.
• C) A shift to a more expansionary monetary policy will tend to reduce short-term interest rates.
• D) A shift to a more expansionary monetary policy will tend to reduce the expected rate of inflation in the future.

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Definitions:

Environmental Events

External occurrences and phenomena in an individual's surroundings that can influence behavior, cognition, and emotions.

Innate

Inborn or natural traits, abilities, or qualities that are not acquired or learned.

Classical Conditioning

An educational method involving the frequent pairing of two cues; a response initially prompted by the second cue comes to be prompted by the first cue in isolation.

Ivan Pavlov

A Russian physiologist known for his work in classical conditioning, demonstrating how stimuli can trigger reflexive responses.