If the Fed promises to conduct a(n) ________ for several years, inflation expectation will be ________

A) contractionary fiscal policy; high B) expansionary monetary policy; high
C) contractionary monetary policy; high D) expansionary fiscal policy; low

B

Economics

You might also like to view...

Which of the following factors contribute to economic growth?

a. a decline in the stock of physical capital b. the discovery of new oil reserves c. a decrease in the productivity of labor d. a decrease in the quantity of labor due to emigration

Economics

Prince is currently consuming some of good X and some of good Y. If good Y is a normal good for Prince, then an increase in his income will definitely cause him to

a. increase his consumption of X. b. increase his consumption of Y. c. decrease his consumption of X. d. decrease his consumption of Y.

Economics