Suppose the Central Bank Increases the Growth Rate of the Money

question 157

Multiple Choice

Suppose the central bank increases the growth rate of the money supply.In the long run,which of the following is unaffected by this change in policy?

• A)the unemployment rate and the inflation rate
• B)the unemployment rate but not the inflation rate
• C)the inflation rate but not the unemployment rate
• D)neither the inflation rate nor the unemployment rate

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Definitions:

Cortisol

A steroid hormone released in response to stress and low blood-glucose concentration, playing a significant role in the body's response to stress.

Amygdala

A part of the brain's limbic system involved in emotion regulation, especially fear, and storing emotional memories.

Neurotransmitter

Chemical substances released from neurons that transmit signals across a synapse to other neurons, muscle cells, or gland cells, playing a crucial role in the functioning of the nervous system.

Norepinephrine

A neurotransmitter involved in the body's fight or flight response, also playing key roles in mood and attention regulation.