In the Early 2000s, Ecuador Suffered High Inflation Because the Central

question 49

Multiple Choice

In the early 2000s, Ecuador suffered high inflation because the central bank was financing a government deficit. In terms of fiscal and monetary policy, what created the problem of inflation was that Ecuador's:

• A)fiscal and monetary policy were expansionary.
• B)fiscal policy was expansionary, but its monetary policy was contractionary.
• C)fiscal policy was contractionary, but its monetary policy was expansionary.
• D)fiscal and monetary policy were contractionary.

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Definitions:

Gamma Waves

A type of brain wave frequency associated with cognitive processing, memory, and learning.

Sensory Adaptation

The mechanism where sensory detectors decrease in sensitivity to unchanging stimuli as time progresses.

Priming

A psychological phenomenon in which exposure to one stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.

Bottom-up Processing

An approach to processing information that begins with the sensory receptors and works up to the brain's integration of sensory information.