Other Things Equal, Monetary Policy to Offset a Contractionary Gap

question 127

Multiple Choice

Other things equal, monetary policy to offset a contractionary gap will tend to​

• A)​Increase the money supply and lower interest rates
• B)​Increase the money supply and increase interest rates
• C)​Decrease the money supply and lower interest rates
• D)​Decrease the money supply and increase interest rates

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Definitions:

Electron Donors

Atoms, molecules, or ions that provide electrons to other atoms, molecules, or ions during chemical reactions, often resulting in the reduction of the latter.

Alkylamine

A compound resulting from the replacement of one or more hydrogen atoms of ammonia (NH3) with alkyl groups.

α-Carbon

The first carbon atom attached directly to a functional group in an organic molecule.

Chemical Shift

A term used in nuclear magnetic resonance (NMR) spectroscopy to describe the change in the resonance frequency of a nucleus due to its chemical environment.