The Fed Would Engage in A(n) _____ If It Wanted

question 100

Multiple Choice

The Fed would engage in a(n) _____ if it wanted to close an inflationary gap.

• A)expansionary monetary policy
• B)contractionary monetary policy
• C)contractionary fiscal policy
• D)expansionary fiscal policy
• E)associated borrowing policy

---

Definitions:

Moderately Strong Association

A term in statistics indicating a fairly significant relationship between two variables, though not perfectly predictive.

Nonlinear

Describes relationships or processes that do not follow a straight line when graphed, indicating a proportionality that changes with different values.

Negative

A term used in various contexts to indicate the presence of a lack, absence, or opposition to a positive condition or attribute.

Strong

In the context of materials, it refers to the ability to withstand force or pressure without breaking or deforming.