If the Fed Does Not Take into Account the Additional

question 250

Multiple Choice

If the Fed does not take into account the additional policy channels available in an open economy,then ________ when conducting contractionary monetary policy.

• A)it is likely to decrease GDP too much and cause a recession
• B)it is likely to decrease GDP too little and inflation will persist
• C)it is likely to increase GDP too much and inflation will persist
• D)it is likely to increase GDP too little and cause a recession

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Definitions:

Research Results

Research results are the findings obtained from systematic investigation aimed at discovering new knowledge or validating existing knowledge.

External Influences

Factors outside of an individual that impact their behavior and decisions, including social, cultural, and environmental aspects.

Implicit

Refers to something that is suggested or implied but not directly expressed.

Explicit

Something stated clearly and in detail, leaving no room for confusion or interpretation.