In Which Case,if Any,will Inflation Remain Higher After a Temporary

question 50

Multiple Choice

In which case,if any,will inflation remain higher after a temporary adverse supply shock?

• A)both when the central bank maintains a higher money supply growth rate and when the central bank does nothing
• B)only if the central bank does nothing
• C)only if the central bank maintains a higher money supply growth rate
• D)None of the above is correct.Whether the central bank maintains a higher money supply growth rate or not,the inflation rate will return to its original level.

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Definitions:

Anhedonia

The inability to experience pleasure from activities usually found enjoyable, often a symptom of depression and other psychiatric disorders.

Psychomotor Retardation

A slowing-down of thought and a reduction of physical movements in an individual, which can be a symptom of psychiatric disorders such as depression.

Spiritual Distress

A condition where an individual experiences a profound disturbance in their belief or value system, often related to a sense of purpose, hope, or connection.

Risk for Suicide

A situation where an individual shows signs of potentially engaging in self-destructive behavior that could lead to their death.