Use the Following to Answer Questions

question 37

Multiple Choice

Use the following to answer questions
Figure: Understanding Expectation Theories
-(Figure: Understanding Expectation Theories) Assume the economy is at point c.According to the theory of adaptive expectations,if the Fed announces and then implements a contractionary policy,the economy will move from point c:

• A) to point a to point d.
• B) to point b to point d.
• C) directly to point d.
• D) to point a to point b.

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Definitions:

Tenure

The duration or period of time that something exists or continues.

Compile

The process of converting source code written in a high-level programming language into executable machine code or another intermediate form.

==

An equality operator used in programming languages to compare two values, returning true if equal and false otherwise.