If Inflation Is Expected

question 122

Multiple Choice

If inflation is expected,

• A) the effects of monetary policy will be amplified.
• B) prices become sticky.
• C) the effects of monetary policy will be delayed.
• D) prices are not sticky.
• E) the effects of fiscal policy will be amplified.

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Definitions:

Continuum

A continuous sequence in which adjacent elements are not perceptibly different from each other, but the extremes are quite distinct.

Deep Processing

A method of learning in which information is analyzed in a meaningful way to aid recall and understanding.

Shallow Processing

A cognitive processing level that involves minimal attention to meaning, as in focusing on a word's physical appearance rather than its significance.

Divided Attention

The ability to process two or more responses or react to multiple stimuli simultaneously.