The Initial Effect of a Change in Monetary Policy Appears

question 44

Multiple Choice

The initial effect of a change in monetary policy appears in ____ and only later in ____.

• A) the aggregate economy, financial markets
• B) financial markets, the aggregate economy
• C) bond markets, stock markets
• D) stock markets, bond markets
• E) stock markets, the aggregate economy

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Definitions:

Tactile Stimulation

The use of touch or physical contact to elicit responses or sensations, important for human development and can impact emotional and physical health.

Gustatory

Relating to the sense of taste and the perception of flavors.

Vestibular

Related to the inner ear system responsible for balance and spatial orientation.

Fast Fibers

Sensory receptors in skin, muscles, organs, and membranes around both bones and joints; these myelinated fibers quickly convey intense sensory input to the brain, where it is perceived as sharp, immediate pain.