Prolonged Periods of Monetary Contraction, as Was the Case During

question 87

Multiple Choice

Prolonged periods of monetary contraction, as was the case during the Great Depression, will likely result in

• A) an increase in real output and employment.
• B) an increase in loanable funds and upward pressure on the rate of inflation.
• C) a decrease in output and downward pressure on prices.
• D) a decrease in unemployment and upward pressure on prices.

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Definitions:

Positive Attitudes

Mental states or dispositions characterized by optimism and a positive outlook towards situations, events, or people.

Mechanical Device

Any piece of machinery or tool that performs a task using moving parts powered in various ways, including manually, electrically, or through hydraulic means.

Finger

A digit on the hand, of which humans typically have five on each hand, used for manipulative and sensory purposes.

Pressure

The force per unit area applied on a surface or the feeling of stress or urgency induced by external or internal factors.