Monetary Policy Is LEAST Effective in Maintaining Low Inflation and High

question 115

Multiple Choice

Monetary policy is LEAST effective in maintaining low inflation and high GDP when

• A) there has been a supply shock.
• B) there has been a demand shock.
• C) the government is running a deficit.
• D) consumers do not want to save.

---

Definitions:

Direct Speech

The repetition of someone's spoken or written words, quoting them exactly, often framed within quotation marks in written texts.

Roughly

Roughly means approximately or about, indicating an estimate rather than an exact number.

Social Learning Perspective

A theory that posits people learn new behaviors and norms through imitation, observation, and modeling, especially by witnessing the actions of others.

Parental Divorce

A legal dissolution of marriage that results in the separation of parents, often impacting the family structure and child development.