Which of the Following Is True

question 54

Multiple Choice

Which of the following is true?

• A) A flat dynamic aggregate demand curve corresponds to a steep monetary policy reaction curve and means that supply shocks will create large changes in current output.
• B) A flat dynamic aggregate demand curve corresponds to a flat monetary policy reaction curve and means that supply shocks will create large changes in current output.
• C) A flat dynamic aggregate demand curve corresponds to a steep monetary policy reaction curve and means that supply shocks will create small changes in current output.
• D) A flat dynamic aggregate demand curve corresponds to a flat monetary policy reaction curve and means that supply shocks will create small changes in current output.

---

Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Subsidiary

A company that is completely or partly owned and partly or entirely controlled by another company, which is referred to as the parent company.

Upstream

In an industry context, refers to the exploration and production stages in oil and gas, or more generally, to processes or activities that occur at the beginning of a supply chain.

Consolidated Amount

The total sum resulting from the combination of various items, expenses, revenues, or financial statements.