In Response to an Unanticipated Tightening of Monetary Policy,the Price

question 4

Multiple Choice

In response to an unanticipated tightening of monetary policy,the price level ________ at first,then ________ after a year.

• A)rises; returns most of the way to its original value
• B)falls; returns most of the way to its original value
• C)remains roughly unchanged; begins to rise
• D)remains roughly unchanged; begins to fall

---

Definitions:

Physical Tension

The state of being stretched tight or having muscles that are strained from stress or anxiety.

Pounding Heart

A sensation where the heartbeat feels unusually strong or rapid, often noticed by an individual during periods of anxiety or physical exertion.

Interstate

Relating to or involving the connection or interaction between different states, typically used in the context of highways or commerce in the United States.

Stress

A physical or emotional response to external pressures or demands, often resulting in feelings of tension and strain.