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:

Human Embryo

The early stage of development in humans from the moment of conception until the end of the eighth week, when it is then referred to as a fetus.

Inner Cell Mass

A group of cells inside the primordial embryo that will develop into the fetus and some of the extraembryonic membranes.

Implantation

The process by which a fertilized egg attaches to the lining of the uterus in early pregnancy.

First Week

The initial seven-day period of time, often used in reference to specific processes, events, or stages in development.