"As Greenspan Chases Inflation, Critics Shout, 'Faster!

question 275

Multiple Choice

"As Greenspan Chases Inflation, Critics Shout, 'Faster!'
"For weeks, the Fed has broadcast its intention to raise interest rates glacially." The Fed was moving slowly, according to an economist because "... the declining price of oil, economic fundamentals, incl productivity and global competition, will keep inflation in check." The Fed, recognizing that the eco was improving stated it planned to "respond to changes in economic prospects as needed to fulfill i obligation to maintain price stability." Other economists disagree with the Fed's restrained policy "mistake."
Www) nytimes, 7/1/20
By increasing the federal funds target, the Fed will reserves and _ _ the quantity of m

• A) increase; increase
• B) decrease; decrease
• C) increase; decrease
• D) decrease; increase

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Definitions:

Straight-Line Method

An accounting method that allocates an equal portion of the cost of an asset over its useful life for the purposes of depreciation.

Depreciation Expense

Allocating the expense of a physical asset in a structured manner throughout its service life.

Double-Declining Balance Method

The Double-Declining Balance Method is an accelerated depreciation technique that doubles the rate of straight-line depreciation to allocate a asset's cost more quickly.

Activity Method

A depreciation technique that allocates the cost of an asset over its useful life based on its level of activity, such as units produced or hours used.