To Counteract a Positive Demand Shock,the Fed Uses ______________ Monetary

question 234

Multiple Choice

To counteract a positive demand shock,the Fed uses ______________ monetary policy,which __________________________.

• A) contractionary;reduces both output and the price level
• B) contractionary;reduces output and increases the price level
• C) expansionary;increases both output and the price level
• D) expansionary;reduces output and increases the price level

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Definitions:

Sectional Divisions

Regional disagreements and conflicts within a country, often based on economic, social, or political differences.

Munn v. Illinois

An 1877 U.S. Supreme Court case that upheld the power of state governments to regulate private industries in the public interest.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases that involve a point of federal law.