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The Fed Followed a Precommitment Policy When It Promised to Keep

question 76

True/False

The Fed followed a precommitment policy when it promised to keep short-term interest rates low for a period of time after the 2008/09 U.S. recession.


Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used to analyze the effect of one variable on another by holding all other relevant factors constant.

Other Things Equal

A Latin term (ceteris paribus) used in economics to signify examining the effect of one changing factor when all other factors remain constant.

Normative Economic Statement

An opinion or judgment that reflects values or what ought to be, rather than factual claims about what is.

Social Security

A government program designed to provide financial support to individuals during retirement, disability, or upon the death of a primary wage earner.

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