If the Fed Wants to Reverse the Effects of an Adverse

question 185

Multiple Choice

If the Fed wants to reverse the effects of an adverse supply shock on unemployment, it should

• A)increase the money supply growth rate, which raises the inflation rate.
• B)increase the money supply growth rate, which reduces the inflation rate.
• C)decrease the money supply growth rate, which raises the inflation rate.
• D)decrease the money supply growth rate, which reduces the inflation rate.

---

Definitions:

Cones

Photoreceptor cells in the retina of the eye that enable color vision and are responsible for visual acuity and the perception of fine details.

Rhodopsin

A pigment found in the rods of the retina that is responsible for the first step in the perception of light.

Opsin

A type of protein in photoreceptor cells of the retina that is essential for vision by responding to light absorption.

Wavelength

A measure of the distance from the peak of a light wave to the peak of the next.