When Inflation Increases

question 193

Multiple Choice

When inflation increases,

• A)the Fed lowers interest rates and the aggregate demand curve shifts to the left.
• B)there is an upward movement along the aggregate demand curve.
• C)the Fed raises interest rates and the aggregate demand curve shifts to the right.
• D)there is a downward movement along the aggregate demand curve.
• E)the Fed raises interest rates and the aggregate demand curve shifts to the left.

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by a person who simultaneously holds two or more contradictory beliefs, ideas, or values.

Inconsistent Behavior

Actions or responses that vary significantly over time or across situations, lacking predictability.

Attitudes

A settled way of thinking or feeling about something or someone, typically reflected in a person's behavior or expressed viewpoints.

True Emotions

Genuine feelings that reflect one's actual emotional state, as opposed to emotions that are displayed for effect or manipulation.