If the Government Uses Interest Rates to Shift Aggregate Demand

question 15

Multiple Choice

If the government uses interest rates to shift aggregate demand or supply it is called what?

• A) Monetary policy
• B) Ecumenical policy
• C) Fiscal policy
• D) Normative policy

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Definitions:

Experimental Approach

A research method involving the manipulation of variables to observe and measure the effects on subjects in a controlled setting.

Manipulation of Variable

The process in experimental research of changing one variable to determine if changes in one variable cause changes in another variable.

Confounds

Variables that obscure the clear understanding of the relationship between different variables in a study, due to their intertwined effects.

Dependent Variable

In scientific research, the variable that is measured to see how it is affected by changes in another variable (the independent variable).