Monetary Policy Is Thought to Be

question 323

Multiple Choice

Monetary policy is thought to be

• A) equally effective in moving the economy out of a depression as in controlling demand-pull inflation.
• B) more effective in moving the economy out of a depression than in controlling demand-pull inflation.
• C) more effective in controlling demand-pull inflation than in moving the economy out of a recession.
• D) only effective in moving the economy out of a depression.

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Definitions:

Magnesium Oxide

A white hygroscopic solid mineral used as an antacid and mild laxative, and in numerous industrial applications.

Balanced Chemical Equation

An equation that represents a chemical reaction with equal numbers of atoms for each element in both reactants and products.

Reduction

A chemical process involving the gain of electrons or the decrease in oxidation state by a molecule, atom, or ion.

Oxidation Number

A measure of the degree of oxidation of an atom in a substance, indicating the number of electrons lost or gained by an atom.