So-Called Market Monetarists Suggest That the Fed, Based on Economic

question 171

Multiple Choice

So-called market monetarists suggest that the Fed, based on economic performance data over the past many decades, should aim for which of the following targets?

• A)a 5 percent per year growth in nominal GDP
• B)a 5 percent per year inflation rate
• C)a 5 percent unemployment rate
• D)a 5 percent per year expansion of real GDP

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Definitions:

Autokinetic Experiment

A psychological experiment where a stationary point of light in a dark room appears to move because of small eye movements, illustrating the effect of suggestion or social influence on beliefs.

Frame of Reference

A system of values or beliefs against which judgments are made or a context through which a situation can be viewed.

Polarised

A situation or condition that causes division, leading to two distinctly opposed groups or perspectives.

More Extreme

The phenomenon where group discussions lead to decisions and opinions that are more extreme than the initial positions of the members.