In the Real World, Contractionary Monetary Policy Would Be Used

question 235

Multiple Choice

In the real world, contractionary monetary policy would be used to

• A) combat a recession.
• B) reduce the rate of inflation.
• C) increase nominal GDP.
• D) increase long-run aggregate supply.

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Definitions:

Confounds

Variables that confuse the outcome of an experiment by influencing the dependent variable in addition to or instead of the independent variable.

Manipulation Checks

Assessments used in experimental research to determine if the independent variable has been successfully manipulated.

Statistically Significant

Indicates that the likelihood of the observed result occurring by chance is low, suggesting a true effect in a study.

Causal Attributions

The process by which individuals explain the causes of behavior and events, which can influence their motivation and emotions.