Which of the Following Statements Is Correct,concerning Price Stability as a Monetary

question 65

Multiple Choice

Which of the following statements is correct,concerning price stability as a monetary goal?

• A) In the long run, inconsistencies exists between the price stability goal and the other goals, such as high unemployment.
• B) In the short run price stability does not conflict with the goals of high employment and interest-rate stability.
• C) Neither A nor B is true.
• D) Both A and B are correct.

---

Definitions:

Sympathetic Nervous System

Part of the autonomic nervous system that prepares the body for fight or flight response by accelerating heart rate, dilating pupils, and increasing blood flow to muscles.

Sympathetic Nervous System

A part of the autonomic nervous system that prepares the body for action by triggering the fight or flight response during stress.

Guilty-knowledge Test

A psychological assessment method used in criminal investigations to determine if an individual has knowledge only a guilty person could have.

Autonomic Responses

Involuntary reactions of the autonomic nervous system to stimuli, including changes in heart rate, respiration, and digestion.