Monetary Policy in Hyperion

question 136

Multiple Choice

Monetary Policy in Hyperion
In Hyperion the Department of Finance is responsible for monetary policy. Hyperion has had an inflation rate of 25% for many years.
-Refer to Monetary Policy in Hyperion.Suppose that the Hyperion Department of Finance has run a public relations campaign claiming it will reduce inflation to 12.5% but it actually raises inflation to 30%.Suppose that the public had expected that the Department of Finance would reduce inflation but only to 22%.Then

• A)unemployment falls, but it would have fallen less if people had been expecting 12.5% inflation.
• B)unemployment falls, but it would have fallen less if people had been expecting 25% inflation.
• C)unemployment rises, but it would have risen less if people had been expecting 12.5% inflation.
• D)unemployment rises, but it would have risen less if people had been expecting 25% inflation.

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Definitions:

Range of Motion

The maximal potential for movement of a joint, generally described by its range of bending and stretching.

Sarcopenia

A condition characterized by loss of skeletal muscle mass and strength, often associated with aging.

Hypertrophy

The enlargement of an organ or tissue from the increase in the size of its cells, often related to physical exercise.

Atrophy

The decrease in muscle mass or tissue size, often due to lack of use, disease, or malnutrition.