Monetary Policy in Flosserland

question 36

Multiple Choice

Monetary Policy in Flosserland

In Flosserland, the Department of Finance is responsible for monetary policy. Flosserland has had an inflation rate of 25% for many years.

-Refer to Monetary Policy in Flosserland.Suppose that the Flosserland Department of Finance has run a public relations campaign claiming it will reduce inflation to 12.5% but that it actually leaves inflation at 25%.Suppose that the public had expected that the Department of Finance would reduce inflation,but only to 20%.Then

• A)unemployment falls,but it would have fallen more if people had been expecting 12.5% inflation.
• B)unemployment falls,but it would have fallen more if people had been expecting 22% inflation.
• C)unemployment rises,but it would have risen more if people had been expecting 12.5% inflation.
• D)unemployment rises,but it would have risen more if people had been expecting 22% inflation.

Distinguish between intrinsic and extrinsic rewards and their impact on employee motivation.

Understand the role of profit-sharing in linking pay with organizational performance.

Grasp the significance of content theories in guiding organizational motivation strategies.

Interpret the effectiveness of performance measurement and feedback in organizational settings.

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Definitions:

Progesterone

Steroid hormone secreted by the corpus luteum and one of the hormones secreted by the placenta.

Ductus Arteriosus

A fetal blood vessel that allows blood to bypass the lungs, which closes soon after birth to establish the regular circulatory path.

Ductus Venosus

A fetal blood vessel that connects the umbilical vein to the inferior vena cava, allowing oxygenated blood from the placenta to bypass the liver and enter the systemic circulation.

Fetal Lungs

The lungs of a fetus, which are not used for breathing air but are critical for the development of the respiratory system.