If the CPI falls from 142 to 140 between two consecutive years, ...

[vicotolentino]

If the CPI falls from 142 to 140 between two consecutive years, this implies that prices fell by 2 between those two years.
 
  Indicate whether the statement is true or false

Question 2

Monetary policy could be procyclical if the Federal Reserve
 
  A) is late recognizing that a recession has begun and does not conduct expansionary monetary policy.
  B) is late recognizing that a recession has begun and conducts expansionary monetary policy.
  C) is quick to recognize that a recession has begun and conducts expansionary monetary policy.
  D) is quick to recognize that a recession has begun and does not conduct expansionary monetary policy.

[livaneabi]

Answer to Question 1

FALSE

Answer to Question 2

B