What Does It Mean When Economists Say That the Fed

question 171

Multiple Choice

What does it mean when economists say that the Fed has attempted to "normalize" monetary policy after the Great Recession?

• A)The Fed has tried to use monetary policy to restore the unemployment rate to its normal full employment rate of around 5 percent.
• B)The Fed has tried to use monetary policy to raise excess reserves back up to normal prerecession levels.
• C)The Fed has tried to make all of the monetary policy actions used during the financial crisis a normal part of the monetary policy tool kit.
• D)The Fed has tried to use monetary policy to bring interest rates back to the historically normal range of 3 percent or higher.

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Definitions:

Acceptance

Acceptance in contract law refers to the express or implied agreement to the terms of an offer, forming a binding contract.

Expressly Stated

Expressly stated refers to something clearly and directly communicated in words, with no need for interpretation or inference.

Implied Authorization

An understanding that an agent has the approval to perform acts that are reasonably necessary to accomplish the purpose of an agency.

Offeror

The person or entity who makes a proposal or offer, especially in a contractual context.