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:

Schachter-Singer Theory

A psychological theory suggesting that emotional experiences arise from cognitive appraisal of a physiological response to stimuli.

Positive Psychology

A branch of psychology that focuses on the study and promotion of positive aspects of human life, such as happiness, well-being, and flourishing.

Realistic Goals

Achievable objectives set by an individual that are based on practical expectations and a clear understanding of their abilities and limitations.

Productive Behavior

Actions that lead to achieving desirable outcomes, often in terms of work, creativity, or social contributions.