When the Fed Conducts Expansionary Monetary Policy, It _______ in the Short

question 22

Multiple Choice

When the Fed conducts expansionary monetary policy, it _______ in the short run, but _______ in the long run.

• A) boosts demand; causes inflation
• B) causes inflation; boosts output
• C) causes inflation; boosts economic growth
• D) boosts demand; boosts supply

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Definitions:

Right to Vote

The legal entitlement of citizens in a democracy to participate in elections and referendums.

Nineteenth Amendment

A change to the U.S. Constitution ratified in 1920 that allowed women to vote.

Equal Rights Amendment

A proposed amendment to the U.S. Constitution aimed at guaranteeing legal gender equality for women and men. It has not been ratified.

Congress

The legislative branch of the United States government, composed of two parts: the Senate and the House of Representatives.