The Use of Monetary Policy to Shift Aggregate Demand to the Right

question 41

Multiple Choice

The use of monetary policy to shift aggregate demand to the right in a severe recession is like

• A) pushing on a string.
• B) putting all your eggs in one basket.
• C) pulling on one's purse-strings.
• D) pushing the envelope.

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Definitions:

Proprioception

Perception of the position and movement of the body, limbs, and head.

Perception

Subjective interpretation of sensations by the brain.

Inferior Olive

A structure in the brainstem involved in motor coordination and learning by sending signals to the cerebellum.

Cerebellum

A major structure of the hindbrain that plays an essential role in motor control, coordination, precision, and timing of movements.