If the Fed Uses a Passive Monetary Policy During Weak

question 58

Multiple Choice

If the Fed uses a passive monetary policy during weak economic conditions,

• A)it increases the money supply substantially.
• B)it reduces the money supply substantially.
• C)it allows the economy to fix itself.
• D)it purchases commercial paper and mortgage-backed securities.

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Definitions:

Maslow's Hierarchy

Maslow's Hierarchy is a psychological theory proposed by Abraham Maslow, laying out a five-tier model of human needs, from basic physiological needs to the need for self-actualization, influencing motivations and behavior.

Theory X

Assumption that employees dislike work and will try to avoid it.

Monetary Rewards

Financial benefits given to employees or individuals as a form of recognition or incentive.

National Labor Relations Act

A foundational statute in United States labor law which protects the rights of employees to organize and to bargain collectively with their employers.