The Federal Reserve's Policy to "Lean Against the Wind" Means

question 44

Multiple Choice

The Federal Reserve's policy to "lean against the wind" means that

• A) when output is high, the Fed sets a high interest rate.
• B) when price levels are high, the Fed sets a low interest rate.
• C) when output is low, the Fed sets a high interest rate.
• D) when price levels are low, the Fed sets a high interest rate.

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Definitions:

Quantitative Data

Numerical data that can be measured or counted and used for mathematical calculations and statistical analysis.

Sample Mean

The average value of a set of observations taken from a sample.

Population

All the members or elements that are examined as part of a statistical study.

Driver's License Number

A unique numerical or alphanumeric code issued by a governmental authority that identifies a person's official driver's license.