If the Fed Wants to Reverse the Effects of a Favorable

question 6

Multiple Choice

If the Fed wants to reverse the effects of a favorable supply shock on unemployment,it should

• A)increase the money supply growth rate which raises the inflation rate.
• B)increase the money supply growth rate which reduces the inflation rate.
• C)decrease the money supply growth rate which raises the inflation rate.
• D)decrease the money supply growth rate which reduces the inflation rate.

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Definitions:

Secondary Groups

Groups characterized by impersonal, formal, and temporary relationships, often established for a specific goal or activity.

Geographically Dispersed

Spread out over a wide geographic area, not localized to one specific location.

Social Pressure

The influence that is exerted on individuals by others, often leading to conformity or changes in behavior, belief, or attitude.

American Culture

The set of customs, traditions, languages, practices, and values shared by the people of the United States.