Monetary Policy Could Be Procyclical If the Federal Reserve

question 71

Multiple Choice

Monetary policy could be procyclical if the Federal Reserve

• A)is late recognizing that a recession has begun and conducts expansionary monetary policy.
• B)is quick to recognize that a recession has begun and conducts expansionary monetary policy.
• C)is late recognizing that a recession has begun and does not conduct expansionary monetary policy.
• D)is quick to recognize that a recession has begun and does not conduct expansionary monetary policy.

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