If the Fed Unexpectedly Shifts to a More Restrictive Monetary

question 92

Multiple Choice

If the Fed unexpectedly shifts to a more restrictive 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) an increase in real GDP
• D) an increase in inflation

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Definitions:

Deprivation Motivation

A drive that emerges from a lack of critical psychological or physical needs, leading to behaviors aimed at fulfilling those deficits.

Persistent Motive

A long-standing desire or drive that consistently influences behavior over time.

Humanistic Psychology

Humanistic psychology is a psychological perspective that emphasizes the individual's potential and stresses the importance of growth and self-actualization.

Motivation Psychology

A field of psychology that studies what drives individuals to initiate, direct, and sustain behaviors and actions towards achieving specific goals.