If the Economy Experiences an Inflationary Gap, a Contractionary Monetary

question 12

Multiple Choice

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

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

---

Definitions:

Big Five

A model describing five major dimensions of human personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Generative Needs

The psychological drive to produce or contribute to the well-being of others and future generations, often associated with creativity and care.

Domestic Abuse

A pattern of behavior in any relationship that is used to gain or maintain power and control over an intimate partner.

Increased Income

Refers to a situation where there is a rise in the amount of money earned from employment, investments, or other sources.