The Fed Generally Announces What It Is Doing with Monetary

question 110

Multiple Choice

The Fed generally announces what it is doing with monetary policy in terms of a target for the:

• A)discount rate.
• B)reserve requirement.
• C)federal funds rate.
• D)monetary base.

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Definitions:

Absolute Threshold

The minimum intensity of a stimulus that one can detect at least 50% of the time.

Sensory Memory

A type of storage that holds sensory information for a very short period of time, usually under one second.

Stimulus Set Point

The threshold at which a stimulus is strong enough to elicit a response or reaction.

Just Noticeable Difference

The minimum difference in stimulation that a person can detect 50% of the time, a concept also known as the threshold of sensation.