From 2008-2009 the Federal Reserve Created a Very Large Increase

question 66

Multiple Choice

From 2008-2009 the Federal Reserve created a very large increase in the money supply. According to the short-run Phillips curve this policy should have

• A)raised inflation and unemployment.
• B)raised inflation and reduced unemployment.
• C)reduced inflation and raised unemployment.
• D)reduced inflation and unemployment.

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Definitions:

Deviance

Behaviors or actions that violate social norms, including formally-enacted rules as well as informal understandings of acceptable conduct.

Crime

Activities that violate the laws of a society and are punishable by authorities.

Execution Costs

Expenses associated with carrying out or implementing a project, policy, procedure, or capital punishment, including planning, administration, and operational expenses.

Taxpayer

An individual or entity that is legally obligated to pay taxes to a federal, state, or local government.