If the Economy Experiences an Inflationary Gap, a Contractionary Monetary

question 71

Multiple Choice

If the economy experiences an inflationary gap, a contractionary monetary policy will _______ interest rates and _______ the bond prices.

• A)increase; increase
• B)increase; decrease
• C)decrease; increase
• D)decrease; decrease

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Definitions:

EGO

The part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Nuclear Family

A family unit consisting of two parents and their children living together as a single household, traditionally seen as a societal norm.

Grandmother

A female family member who is the mother of one's parent, often playing a significant role in family support and heritage.

EGO

A part of the psychoanalytic theory of personality, representing the realistic part that mediates between the desires of the ID and the super-ego.