If There Is a Supply Shock and There Are Full

question 158

Multiple Choice

If there is a supply shock and there are full protection COLAs

• A)the Fed must reduce the money supply and follow an extinguishing policy to prevent an inflationary spiral.
• B)the Fed must increase the money supply and follow an extinguishing policy to prevent an inflationary spiral.
• C)the Fed must reduce the money supply and follow an accommodating policy to prevent an inflationary spiral.
• D)the Fed must increase the money supply and follow an accommodating policy to prevent an inflationary spiral.

---

Definitions:

Mammalia

A class of warm-blooded vertebrate animals characterized by the presence of mammary glands, which females use to feed their young.

Class

A rank or category in biological taxonomy, falling between phylum and order, used to classify organisms with shared characteristics.

Phyla

The plural of phylum, a rank in the biological classification system that is below kingdom and above class, used to group organisms based on their basic body plan.

Amniotic Egg

Egg that contains an amnion and other membranes that surround and protect the developing embryo and keep it moist; the evolution of the amniotic egg was one of the adaptations that allowed animals to become completely terrestrial.