If the Fed Conducts a Contractionary Monetary Policy,________

question 57

Multiple Choice

If the Fed conducts a contractionary monetary policy,________.

• A) banks will make fewer loans
• B) bank deposits will increase
• C) demand for labor will increase
• D) the nominal interest rate will decrease

---

Definitions:

Gold Standard

Refers to the best, most reliable, or most prestigious thing of its type.

Peer-reviewed Article

A scholarly work that has been evaluated and deemed credible by experts in the same field before publication.

Experimental Research

A methodology involving the manipulation of variables to establish cause-and-effect relationships.

Phenomenology

A philosophical approach focusing on the subjective, lived experiences and how people perceive and make sense of the world.