If the Fed Can Communicate That It Will Maintain A(n)________

question 135

Multiple Choice

If the Fed can communicate that it will maintain a(n) ________ for a long period of time,the long-term nominal interest rate will remain ________.

• A) contractionary monetary policy; low
• B) expansionary monetary policy; low
• C) contractionary fiscal policy; high
• D) expansionary fiscal policy; low

---

Definitions:

Comparable Work

Comparable work refers to jobs that are sufficiently similar in terms of skills, effort, responsibility, and working conditions, used often in discussions about fair wages and equal pay.

GDP

Gross Domestic Product (GDP) measures the total value of all final goods and services produced within a country's borders in a specific time period, representing the size of its economy.

Trade Deficit

A scenario in which a nation's expenditure on imported goods and services surpasses its revenue from exports, leading to a net export of the home currency to international markets.

U.S. Dollars

The official currency of the United States, represented by the symbol $.