A Country Engages in a Contractionary Monetary Policy That Causes

question 32

Multiple Choice

A country engages in a contractionary monetary policy that causes its income to decline and its interest rate to rise. This causes investors from other countries to increase their financial investments in that country, causing the interest rate in the investors' countries to rise.In this case, the business cycle is being transmitted internationally through ____ effect.

• A)a trade
• B)an interest-rate
• C)an exchange-rate
• D)an expected-inflation

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Definitions:

Crani/o

A prefix relating to the skull.

Arthrocentesis

A medical procedure involving the puncture of a joint space with a needle to remove synovial fluid for diagnostic or therapeutic purposes.

Patella

Also known as the kneecap, it is a small flat triangular bone located at the front of the knee joint.

Coccyg/o

Refers to the coccyx, the tailbone at the base of the vertebral column.