In Comparing the Actions of the Fed in the Fall

question 71

Multiple Choice

In comparing the actions of the Fed in the fall of 1998 with its actions in the fall of 1991, we can say that

• A)in both instances the Fed moved quickly to raise interest rates in the face of an expected increase in inflation.
• B)in both instances the Fed moved quickly to cut interest rates in the face of signs of a credit crunch.
• C)the Fed moved more quickly in 1998 than in 1991 to cut interest rates in the face of signs of a credit crunch.
• D)the Fed failed in both cases to take action in the face of signs of a credit crunch.

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Definitions:

Psychoanalytic Psychologists

Professionals who study and practice psychoanalytic theories, focusing on the unconscious mind, childhood experiences, and how these influence behavior and mental states.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formation, experimentation, and conclusion to validate results.

Oedipal Crisis

Oedipal Crisis, a concept in Freudian psychoanalytic theory, is a stage in the psychosexual development of boys typically between ages 3 and 6, where they experience desire for their mother and jealousy towards their father.

Freudian Ideas

Theories developed by Sigmund Freud that focus on unconscious motives and conflicts as determinants of human behavior.