The Diagrams Below Illustrate Two Alternative Approaches to Implementing Monetary

question 70

Multiple Choice

The diagrams below illustrate two alternative approaches to implementing monetary policy.The economy begins in monetary equilibrium with the interest rate equal to 2% and the money supply equal to . FIGURE 28-1
-Refer to Figure 28-1.If the Bank of Canada pursues a(n) ________ monetary policy and raises the target interest rate from 2% to 3%,then the quantity of money demanded will ________.

• A)contractionary; rise
• B)contractionary; fall
• C)expansionary; not change
• D)expansionary; rise
• E)expansionary; fall

Recognize the use of free association as a technique in psychoanalysis.

Identify the contributions of major figures in the development of psychoanalytic therapy.

Understand the distinction between psychoanalysis and other forms of therapy such as behavior therapy and humanistic therapy.

Recognize the benefits and limitations of psychoanalysis, including its effectiveness and potential criticisms.