The Proposition That the Fed Should Concentrate on Price Stability

question 45

Multiple Choice

The proposition that the Fed should concentrate on price stability rather than reducing unemployment is

• A)generally accepted by politicians, although few economists accept this proposal.
• B)largely accepted by most economists, although politicians do not agree.
• C)highly debatable because many do not agree that price stability should be the most important goal.
• D)simply incorrect, and no one accepts this idea anymore.

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Definitions:

Hormone Replacement Therapy

A medical treatment in which hormones are given to supplement or replace those lacking in the body, often used during menopause or for thyroid conditions.

Menopause

The phase in a woman's life marked by the end of her menstrual cycles, typically occurring between the ages of 45 and 55.

Economic Status

An individual's or family's economic position in society, often measured by income, wealth, and occupation.

Health

A state of complete physical, mental, and social well-being, and not merely the absence of disease or infirmity.