Forward Guidance Refers to Central Banks

question 71

Multiple Choice

Forward guidance refers to central banks

• A)setting long-term interest rates.
• B)telling the public what future monetary policy will be.
• C)simultaneously reducing unemployment and inflation.
• D)engaging in monetary policy to offset the negative side-effects of the government's fiscal policies.

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Definitions:

Electromagnetic Spectrum

The range of all types of electromagnetic radiation, from gamma rays to radio waves.

Increasing Wavelength

A phenomenon where the wavelength of light or other electromagnetic radiation becomes longer, moving from higher energy to lower energy on the spectrum.

Directly Proportional

A relationship between two variables where they increase or decrease in conjunction with each other at a constant ratio.

Absorption

The process by which one substance becomes taken up or incorporated into another substance, such as a gas being absorbed by a liquid.