Monetary Policy Is

question 76

Multiple Choice

Monetary policy is

• A) neutral in the short run but can have strong effects in the long run.
• B) is neutral in the long run but can provide either expansionary or contractionary pressure in the short run.
• C) is neutral in the long run but can provide some expansionary pressure only in the short run.
• D) is neutral in the long run but can provide some contractionary pressure only in the short run.
• E) none of the above.

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Definitions:

Dispositional Factors

These are inherent personality traits and characteristics that influence an individual's behavior and reactions to situations.

Situational Factors

External influences on an individual’s behavior or performance that are determined by the circumstances or environment.

Heider

Fritz Heider, an Austrian psychologist known for his work in attribution theory, focusing on how individuals infer the causes of behavior.

Basic Assumption

A fundamental belief or principle that is accepted as true without proof, often serving as the basis for further reasoning or behavior.