Suppose the Federal Reserve Makes Monetary Policy More Expansionary

question 142

Multiple Choice

Suppose the Federal Reserve makes monetary policy more expansionary.In the long run

• A)both inflation and the unemployment rate are higher than they were prior to the change in policy.
• B)inflation is higher and the unemployment rate is the same as it was prior to the change in policy.
• C)inflation is lower and the unemployment rate is lower than it was prior to the change in policy.
• D)inflation is lower and unemployment is the same as it was prior to the change in policy.

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Definitions:

Afterpotential

The changes in membrane potential that occur after an action potential, often influencing the neuron's excitability.

Voltage-Gated Channel

A type of ion channel that opens or closes in response to changes in membrane potential.

Chemical Synapse

A specialized junction through which neurons signal to each other and to non-neuronal cells, allowing ion or molecule movements that facilitate neurotransmission.

Presynaptic Terminal

The part of a neuron that releases neurotransmitters into the synaptic cleft to communicate with a neighboring neuron.