If an Economy Experiences High Interest Rates and High Unemployment,the

question 25

Multiple Choice

If an economy experiences high interest rates and high unemployment,the ISLM framework predicts that ________ policy has been too ________.

• A)fiscal;expansionary
• B)fiscal;contractionary
• C)monetary;expansionary
• D)monetary;contractionary

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Definitions:

Change Jobs

The act of leaving one's current employment and finding work in a different job or field, often for better pay, conditions, or satisfaction.

Skepticism

A philosophical attitude questioning the possibility of certain knowledge or truth.

Cognitive Flexibility

The mental ability to switch between thinking about two different concepts or to think about multiple concepts simultaneously, facilitating adaptability and problem-solving.

Cognitive Abilities

Mental capabilities that involve the processing of information, reasoning, memory, problem-solving, and decision making.