If the Fed Does Not Take into Account the Additional

question 250

Multiple Choice

If the Fed does not take into account the additional policy channels available in an open economy,then ________ when conducting contractionary monetary policy.

• A)it is likely to decrease GDP too much and cause a recession
• B)it is likely to decrease GDP too little and inflation will persist
• C)it is likely to increase GDP too much and inflation will persist
• D)it is likely to increase GDP too little and cause a recession

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Definitions:

Rephrase Statements

The act of expressing the same ideas or information in different words, often to achieve greater clarity.

Nonverbal Feedback

Communication without words, such as gestures, facial expressions, and body language, that provides response or reaction.

Native Language

The first language a person learns at home in childhood and still understands.

Transcreation

The process of adapting a message from one language to another while maintaining its intent, style, tone, and context.