Which of the Following Quotations Correctly Describes the Impact of Monetary

question 39

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 less 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 more jobs."

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Definitions:

Groupthink

A mode of thinking in highly cohesive groups in which the desire to reach unanimous agreement overrides the motivation to adopt proper rational decision-making procedures.

Unanimity

Complete agreement among all members or parties involved on a particular issue or decision.

Rational

Based on or in accordance with reason or logic; capable of making sensible or logical decisions.

Antecedent

A preceding event, condition, or cause that logically goes before something else.