In Response to an Inflationary Gap, the Fed

question 100

Multiple Choice

In response to an inflationary gap, the Fed

• A) waits until the price level falls before acting.
• B) lowers the federal funds rate by buying U.S. government securities.
• C) raises the federal funds rate by selling U.S. government securities.
• D) raises the federal funds rate by buying U.S. government securities.

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Definitions:

Organizational Commitment

The psychological attachment an employee has towards their organization, influencing their willingness to continue working there.

Conscientiousness

A personality trait characterized by organization, dependability, and a strong sense of duty or responsibility.

Big Five

A psychological theory describing five core dimensions of human personality: Openness, Conscientiousness, Extraversion, Agreeableness, and Neuroticism.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a high level of responsibility.