In the Short Run, Expansionary Monetary Policy by the Fed

question 48

Multiple Choice

In the short run, expansionary monetary policy by the Fed would

• A) reduce unemployment at the cost of higher inflation.
• B) reduce inflation at the cost of a rise in the natural rate of unemployment.
• C) reduce inflation and leave the natural unemployment rate unchanged.
• D) reduce both inflation and unemployment.
• E) increase both inflation and unemployment.

Recognize how group size and presence of dissenting voices impact conformity.

Identify and understand various social influence techniques such as the low-ball technique and the foot-in-the-door technique.

Understand the role of ambiguity and crisis situations in informational social influence.

Recognize the effects of public compliance and private acceptance in group dynamics.

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