If the Fed Unexpectedly Shifts to a More Expansionary Monetary

question 171

Multiple Choice

If the Fed unexpectedly shifts to a more expansionary monetary policy, which of the following will most likely occur in the short run?

• A) a decrease in the real interest rate
• B) an increase in unemployment
• C) a decrease in real GDP
• D) an increase in the nominal interest rate

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Definitions:

Socializing

The process of interacting with others to create relationships, adapt to social norms, or enjoy companionship.

Supplication

A form of behavior where an individual seeks aid, support, or mercy, often through humble request.

Self-presentation Strategy

Techniques and behaviors individuals use to control or influence how others perceive them, often to elicit a desired impression.

Ingratiation

A psychological strategy used by an individual to make others like them by flattering or praising them, often to gain personal advantage.