When the Fed Uses Contractionary Policy

question 141

Multiple Choice

When the Fed uses contractionary policy

• A)the price level rises higher than it would if the Fed did not pursue policy.
• B)the price level rises less than it would if the Fed did not pursue policy.
• C)it does not change the price level.
• D)it causes inflation.

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Definitions:

Introverted Feeling

A cognitive function characterized by deep, introspective emotions and decisions based primarily on personal values and feelings.

Collective Unconscious

A concept proposed by Carl Jung, referring to the part of the unconscious mind which is derived from ancestral memory and experience and is common to all humankind.

Libido

Within the framework of psychoanalytic theory, the force of the sexual urge is considered a part of the life instinct.

Psyche

The human soul, mind, or spirit, often used in psychology to refer to the totality of the human mind, conscious, and unconscious.