The Time Between When Federal Reserve Policymakers Decide to Close

question 20

Multiple Choice

The time between when Federal Reserve policymakers decide to close an output gap and when they act to change the fed funds rate is an example of:

• A)the outside lag of macroeconomic policy.
• B)a structural policy change.
• C)anchoring inflationary expectations.
• D)the inside lag of macroeconomic policy.

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Definitions:

Buildings

Physical structures used for business operations or investment, considered as fixed assets on a company's balance sheet.

Partial Equity Method

An accounting method that recognizes the initial investment at cost and incorporates the investor's share of the investee's net income or losses to some extent, not fully as in the full equity method.

Noncontrolling Interest

A minority share of ownership in a subsidiary that is not enough to control its operations, held by investors outside of the parent company.