In which of the following situations would the Fed conduct contractionary monetary policy?
A) The Fed is worried that deflation will become a problem.
B) The Fed fears that unemployment is climbing above the natural rate.
C) The Fed believes that aggregate demand was growing too slowly to keep up with potential GDP.
D) The Fed is concerned that aggregate demand would continue to exceed the growth in potential GDP.
D
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Which of the following is illustrated by the distance between the aggregate expenditure line and the 45-degree line at each level of real GDP?
a. The level of saving in an economy b. Unplanned inventory change c. Planned investment undertaken in an economy d. The marginal propensity to save e. The marginal propensity to consume
Which of the following is an example of price competition?
a. Nike signs LeBron James to a $90 million contract for endorsements. b. Kellogg's puts the images of Snap, Crackle, and Pop on boxes of Cocoa Krispies, linking the cereal with Rice Krispies. c. McDonald's introduces new garden McSalads. d. Tropicana introduces the Blue Raspberry Rush juice. e. Apple offers a 20% discount on its new range of iPhones.