Which of the Following Quotations Correctly Describes the Impact of Monetary

question 79

Multiple Choice

Which of the following quotations correctly describes the impact of monetary policy on the economy?

• A)"House sales are down lots, due to the higher money growth."
• B)"The extra money pumped into the economy by the central bank is creating more exports."
• C)"The tightening of money growth is helping sell goods abroad."
• D)"Businesses are investing more, now that monetary policy has become less expansionary."
• E)"The extra money pumped into the economy by the central bank is creating fewer jobs."

---

Definitions:

Perceived Harmfulness

The extent to which an action, substance, or situation is believed by individuals or society to be potentially damaging or dangerous.

Actual Harmfulness

The tangible or measurable damage or negative impact caused by an action, behavior, or substance.

Informal Punishment

Punitive actions or responses that occur outside formal judicial or institutional frameworks, often within social groups or communities.

Social Diversions

Are minor acts of deviance that are generally perceived as relatively harmless. They evoke, at most, a mild societal reaction, such as amusement or disdain.