An Active Monetary Policy That Attempts to Smooth Out the Business

question 103

Multiple Choice

An active monetary policy that attempts to smooth out the business cycle would involve conducting ________ monetary policy during recessions and ________ monetary policy during expansions.

• A) contractionary; contractionary
• B) expansionary; expansionary
• C) contractionary; expansionary
• D) expansionary; contractionary
• E) countercyclical; expansionary

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Definitions:

Positive Aspect

Refers to looking at the favorable elements of a situation, emphasizing optimism and constructive outcomes.

Illness Behaviors

Actions and attitudes that individuals adopt when they perceive themselves as ill.

Cured

The complete resolution or eradication of a disease or condition from an individual's body.

Risk Factor

Any characteristic or condition that occurs with greater frequency in people with a disease than it does in people free from that disease.