Suppose the Federal Reserve Makes Monetary Policy More Expansionary

question 142

Multiple Choice

Suppose the Federal Reserve makes monetary policy more expansionary.In the long run

• A)both inflation and the unemployment rate are higher than they were prior to the change in policy.
• B)inflation is higher and the unemployment rate is the same as it was prior to the change in policy.
• C)inflation is lower and the unemployment rate is lower than it was prior to the change in policy.
• D)inflation is lower and unemployment is the same as it was prior to the change in policy.

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Definitions:

William James

William James was an influential American philosopher and psychologist, known for his contributions to pragmatism and the psychology of religion, and as the co-founder of functional psychology.

Structuralism

A school of thought in psychology that emphasizes understanding the structure of the mind and its perceptions by analyzing its components.

School

An institution for educating children and young people, often consisting of various levels such as elementary, middle, and high school.

Behaviorism

A school of psychology that focuses on observable behaviors as the subject of study, negating the need to consider internal mental states.