Monetary Policy

question 47

Multiple Choice

Monetary policy

• A)can be implemented quickly and most of its impact on aggregate demand occurs very soon after policy is implemented.
• B)can be implemented quickly,but most of its impact on aggregate demand occurs months after policy is implemented.
• C)cannot be implemented quickly,but once implemented most of its impact on aggregate demand occurs very soon afterward.
• D)cannot be implemented quickly and most of its impact on aggregate demand occurs months after policy is implemented.

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Definitions:

Conversion Theory

A theory concerned with how people change their beliefs or behaviors in response to direct persuasion in a group context.

Minority Opinions

The views held by a smaller segment of the group, which can influence the majority under certain conditions despite their limited numbers.

Authority Commands

Directives or orders given by a person or body with power or control, often followed by those under their influence.

Agree

To accept or consent to a viewpoint or proposition shared by others.