The Short Run Sequence of Events Following an Unanticipated Shift

question 121

Multiple Choice

The short run sequence of events following an unanticipated shift to a more expansionary 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:

Organizational Culture

A collection of common beliefs, objectives, values, and behaviors that define a particular institution or organization.

Organization-Wide Norms

The shared expectations and rules that guide behavior of members within an entire organization.

Vested Interests

The stake or involvement one has in an outcome that, typically, provides personal benefit, financial gain, or power.

Habit

is a regular behavior or routine that is performed repeatedly, often unconsciously.