If the Output Is Too Low,to Achieve the Medium Run

question 13

Multiple Choice

If the output is too low,to achieve the medium run equilibrium,the central bank will

• A)increases policy rate.
• B)reduces policy rate.
• C)increase money supply.
• D)increases inflation rate.

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Definitions:

Reaction Formation

A defense mechanism where an individual acts in the opposite way to their unwanted or unacceptable thoughts and feelings.

Defence Mechanism

Psychological strategies brought into play by individuals or the ego to protect against anxiety and to manage emotional conflict and internal or external stressors.

Freud

Sigmund Freud, an Austrian neurologist known as the founding father of psychoanalysis, a method for treating psychopathology.

Compensation

Payment or remuneration awarded for work or a loss, damage, or injury suffered.