During Early 2001, the Fed Unexpectedly Increased the Money Supply

question 18

Multiple Choice

During early 2001, the Fed unexpectedly increased the money supply.The effect of this policy was a

• A) movement downward along the short-run Phillips curve.
• B) movement upward along the short-run Phillips curve.
• C) upward shift of the short-run Phillips curve.
• D) downward shift of the short-run Phillips curve.
• E) rightward shift of the long-run Phillips curve.

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Definitions:

Atomic

Relating to the basic, indivisible components of matter.

Truth-functional Compound

A logical statement whose truth value depends solely on the truth values of its components.

Quantifier

A symbolic expression in logic that specifies the quantity of specimens in the domain of discourse that satisfy an open formula.

Atomic Open Sentence

A simple sentence in symbolic logic that contains variables but does not contain any logical connectives and cannot be further divided into simpler sentences.