Which of the Following Statements Is Most Accurate About the Fed's

question 122

Multiple Choice

Which of the following statements is most accurate about the Fed's use of the federal funds rate target since the financial crisis of 2007-2009?

• A)It stimulated quick recovery from the Great Recession, and the target is now at precrisis levels.
• B)The target has become significantly more important as a tool for signaling policy changes.
• C)The Fed effectively lost the ability to use the target for contractionary monetary policy, as the actual federal funds rate fell to nearly zero.
• D)The Fed effectively lost the ability to use the target for expansionary monetary policy, as the actual federal funds rate fell to nearly zero.

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Definitions:

Parallel Structure

The repetition of a chosen grammatical form within a sentence, enhancing readability and coherence by keeping similar elements in a series consistent.

Sentence Variety

The use of different lengths, beginnings, and structures in sentences to enhance writing style and readability.

Concise Language

The use of fewer words to express an idea, ensuring clarity and brevity in communication without sacrificing meaning.

Seaquake

An underwater earthquake that occurs beneath the sea floor and can cause significant disturbances in the ocean.