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:

Etiology

The study of the causes or origins of diseases or disorders.

Abnormal Psychology

The study of psychological disorders and unusual patterns of behavior, emotion, and thought.

Prevalence

The proportion of a population found to have a condition or characteristic at a specific time.

Frequency

The rate at which something occurs over a particular period of time or in a given sample.