What Can the Federal Reserve Do to Increase the Natural

question 69

Multiple Choice

What can the Federal Reserve do to increase the natural rate of unemployment?

• A)nothing
• B)follow expansionary monetary policy that will increase inflation
• C)follow contractionary monetary policy that will reduce inflation
• D)follow contractionary monetary policy that will increase inflation

---

Definitions:

Public Good

Goods or services available to all in society without charge, delivered by the government or private organizations, without the intention of making a profit.

Rival Consumption

A situation where the consumption of a good by one individual prevents simultaneous consumption by other individuals.

Excludable

A characteristic of a good or service where it's possible to prevent individuals who have not paid for it from having access.

Television Signal

The electronic waves transmitted from a broadcast station that carry audio and visual information to televisions.