Autonomous Tightening of Monetary Policy Involves ________

question 39

Multiple Choice

Autonomous tightening of monetary policy involves ________.

• A)raising interest rates and shifting the MP curve to the right
• B)lowering interest rates and shifting the MP curve to the left
• C)raising interest rates and shifting the MP curve to the left
• D)lowering interest rates and shifting the MP curve to the right
• E)none of the above

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Definitions:

Capital Goods

Long-lasting goods, such as equipment or buildings, used to produce other goods or services.

Consumer Goods

Products and services that are consumed by individuals or households to satisfy their needs or wants.

Command Economy

An economy in which a central government either directly or indirectly sets output targets, incomes, and prices.

Labor

Labor describes the human exertion (whether physical or mental) that is applied to the production of goods and services.