Which of the Following Statements Is Incorrect

question 59

Multiple Choice

Which of the following statements is incorrect?

• A)A fall in the central bank's target inflation rate shifts the monetary policy reaction curve to the left
• B)A decrease in the central bank's inflation target raises the real interest rate policymakers set at each level of output
• C)Shifts in the monetary policy reaction curve shift the dynamic aggregate demand curve in the same direction
• D)A fall in the central bank's target inflation rate causes the monetary policy reaction curve to flatten

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Definitions:

Irrational Beliefs

Concepts or thoughts that lack logical reasoning or factual evidence, often leading to negative emotional outcomes or behaviors.

Rational-Emotive Therapy

A cognitive-behavioral approach to psychotherapy that identifies irrational beliefs to alter emotional responses and behaviors.

Irrational Beliefs

Thoughts or convictions not based on reason or logic, often leading to unreasonable behaviors and emotional distress.

Cognitive-Behavior Therapists

Mental health professionals who use techniques from cognitive therapy and behavioral therapy to modify dysfunctional emotions, behaviors, and thoughts.