What Impact Does Expansionary Monetary Policy Have on the Short-Run

question 97

Multiple Choice

What impact does expansionary monetary policy have on the short-run Phillips curve if consumers and firms expect the expansionary monetary policy to increase inflation?

• A)The short-run Phillips curve shifts down.
• B)The short-run Phillips curve shifts up.
• C)The short-run Phillips curve becomes the long-run Phillips curve.
• D)The short-run Phillips curve is not affected by expansionary monetary policy.

---

Definitions:

Posttraumatic Stress Disorder

A mental health condition that's triggered by a terrifying event, either experiencing it or witnessing it, characterized by severe anxiety, flashbacks, nightmares, and uncontrollable thoughts about the event.

Life-Threatening Trauma

A serious injury or shock to the body, as from violence or an accident, that poses an immediate risk to a person's life.

Hoarding Disorder

A psychological condition characterized by the persistent difficulty discarding or parting with possessions, regardless of their actual value.

Figurines

Small sculpted or molded figures, often made of ceramic, metal, or plastic, used as decorative objects or collectibles.