One Problem with the Ripple Effect from the Fedʹs Monetary

question 25

Multiple Choice

One problem with the ripple effect from the Fedʹs monetary policy is

• A) the tight relationship between that the Federal funds rate has to aggregate spending.
• B) the frequent misalignment of the spread between the Federal funds rate and the Federal funds rate target.
• C) the fact that the monetary policy transmission process is long and drawn out.
• D) that changing the Federal funds target rate seldom has an effect on the markets for reserves and loanable funds.

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Definitions:

Content Validity

Content Validity assesses whether a test or measurement tool accurately covers the content it is intended to measure, ensuring that all aspects of the construct are evaluated.

Construct Validity

The degree to which a test or tool measures the theoretical construct or trait it is intended to measure, reflecting its accuracy and appropriateness of inferences drawn from test scores.

Discriminant Validity

A property demonstrating that a test or scale that is not closely related to variables from which it is theoretically distinct.

Construct Validity

The degree to which a test or instrument accurately measures the theoretical construct or psychological concept it intends to.