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Juliana began taking violin lessons as a young child. As a teenager, she participated in a research study in which MRI scans of teenagers who had played the violin for several years were compared to MRI scans of other teenagers who had never played a musical instrument. The MRI scans of the teenage violinists showed that brain regions devoted to control of thefine muscles of the hands and fingers were larger in the teenage musicians than in the nonmusicians. This example illustratesthe important phenomenon of:
Monetary Policy
The process by which a government, central bank, or monetary authority manages the money supply to achieve specific goals, such as controlling inflation, maintaining employment, and stabilizing the currency.
Short-Run Phillips Curve
A curve that illustrates a short-term trade-off between inflation and unemployment, suggesting lower unemployment can come at the cost of higher inflation.
Financial Crisis
A broad term for a situation when financial assets rapidly lose a significant part of their nominal value.
Contractionary Monetary Policy
A central banking strategy involving the increase of interest rates or reduction of the money supply to decrease inflation and slow down economic growth.
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