The Great Moderation Consensus Regarding the Use of Monetary Policy

question 113

Multiple Choice

The Great Moderation consensus regarding the use of monetary policy to fight recessions is that expansionary monetary policy:

• A) is ineffective because the public expects it.
• B) is harmful because it only increases the aggregate price level.
• C) has little impact on aggregate demand because of liquidity traps.
• D) can be used to increase aggregate demand but at the cost of higher aggregate prices.

---

Definitions:

Gynecological Problems

Health issues related to the female reproductive system, including infections, pain, menstrual irregularities, and infertility.

Ovarian Cancer

A type of cancer that begins in the ovaries, characterized by the uncontrolled growth of cells in the ovarian tissues.

Intimate Partner Violence

Abuse or aggression that occurs in a close relationship, including physical, sexual, emotional, and financial abuses or threats.

Mental Health Conditions

Disorders that affect an individual's mood, thinking, and behavior, ranging from depression and anxiety to schizophrenia and bipolar disorder.