Reduced Macroeconomic Variability in the U

question 55

Multiple Choice

Reduced macroeconomic variability in the U.S.since 1981 has all of the following benefits except:

• A)improving market functioning.
• B)making business planning easier.
• C)reducing resources devoted to managing inflation risks.
• D)allowing the Fed to pursue accommodating policy.

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Definitions:

Social Identity Theory

The view that social identity is a crucial part of self-image and a valuable source of positive feelings about oneself.

Cognitive Dissonance Reduction

The process of resolving the discomfort caused by holding two or more conflicting cognitions (beliefs, attitudes) by changing, adding, or minimizing one of the discordant factors.

Defective

A term used to describe something that is imperfect or lacking in some component, making it not fully functional.

Staples

Metal wire or plastic pieces used to bind materials together, typically papers or the edges of wounds in medical suturing.