Monetary Policy in Mokania

question 52

Multiple Choice

Monetary Policy in Mokania
Mokania has had inflation of 15% for many years. Mokania establishes a new central bank, the Bank of Mokania, with the hopes of reducing the inflation rate.

-Refer to Monetary Policy in Mokania.The Bank of Mokania publicizes its intent to reduce the inflation rate to 5%.If it is successful in doing so but people had expected inflation to fall only to 10%,then

• A)unemployment rises but it would have risen by more if people had expected inflation to be 6%.
• B)unemployment rises but it would have risen by less if people had expected inflation to be 6%.
• C)unemployment falls but it would have fallen by more if people had expected inflation to be 6%.
• D)unemployment falls but it would have fallen by less if people had expected inflation to be 6%.

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Definitions:

Manifest Content

In psychoanalytic theory, the apparent story, events, or imagery of a dream as remembered by the dreamer, distinguished from the hidden meaning or latent content.

Electra Complex

A psychoanalytic theory describing a girl's sense of competition with her mother for the affection of her father.

Defensive Content

Material within a psychological test aimed at eliciting responses that might reveal particular defense mechanisms or insecurities of the participant.

Genital Stage

When the child begins adult sexual development in puberty.