The Short Run Sequence of Events Following an Unanticipated Shift

question 161

Multiple Choice

The short run sequence of events following an unanticipated shift to a more restrictive monetary policy would be

• A) lower interest rates, decrease in aggregate demand, and a reduction in output.
• B) lower interest rates, increase in aggregate demand, and an expansion in output.
• C) higher interest rates, decrease in aggregate demand, and a reduction in output.
• D) higher interest rates, increase in aggregate demand, and an expansion in output.

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Definitions:

Certificate Of Incorporation

A document certifying that a corporation is incorporated in the state and is authorized to conduct business.

Secretary Of State

is a high-ranking official in the government, responsible for foreign affairs in some countries, or overseeing various governmental and administrative duties in others.

De Facto Corporation

Latin for “corporation in fact”; a corporation that has not substantially met the requirements of the state incorporation statutes.

Corporation By Estoppel

A defective corporation that has conducted business with a third party and therefore cannot deny its status as a corporation to escape liability.