Use the Following to Answer Questions

question 178

Multiple Choice

Use the following to answer questions:
Figure: Monetary Policy I
-(Figure: Monetary Policy I) Refer to Figure: Monetary Policy I. If the economy is initially in equilibrium at E₁ and the central bank chooses to buy Treasury bills, _____ shift to _____ a(n) _____ gap.

• A) AD₂ will; right, causing; inflationary
• B) AD₂ will; AD₁, causing; recessionary
• C) AD₁ will; AD₂, closing; recessionary
• D) AD₁ will; left, increasing; recessionary

---

Definitions:

Trans Fat

A type of unhealthy fat formed through the industrial process of adding hydrogen to vegetable oil, which can raise bad cholesterol levels and increase heart disease risk.

Unsaturated Fats

A type of dietary fat, found in foods like avocados, nuts, and olive oil, that is considered healthier than saturated fats.

Saturated Fats

Types of fats commonly found in animal products and some plant oils, known to raise levels of LDL cholesterol in the blood, potentially increasing heart disease risk.

Indispensable Amino Acids

Essential amino acids that the human body cannot synthesize on its own and must be obtained through diet.