When the Fed Uses Contractionary Policy

question 141

Multiple Choice

When the Fed uses contractionary policy

• A)the price level rises higher than it would if the Fed did not pursue policy.
• B)the price level rises less than it would if the Fed did not pursue policy.
• C)it does not change the price level.
• D)it causes inflation.

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Definitions:

Systematic Desensitization

A therapeutic method used to reduce phobia or anxiety through gradual exposure to the feared object or situation paired with relaxation techniques.

Rational-Emotive Behavioral Therapy

A form of psychotherapy that identifies irrational beliefs, challenges them, and encourages adopting more rational and adaptive beliefs.

Transference

In psychotherapy, the process by which patients project feelings and attitudes from a past relationship onto their therapist.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation paired with relaxation exercises.