Uncertainty About Monetary Policy

question 35

Multiple Choice

Uncertainty about monetary policy

• A) was the factor that started the financial crisis in 2008.
• B) can keep investment low.
• C) is why the Fed does not use inflation rate targeting.
• D) makes deposits in banks more desirable because they become safer.

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Definitions:

Tax Rates

The percentage at which an individual or corporation is taxed, which can vary according to income level, type of taxpayer, and jurisdiction.

Federal Marginal Income Tax

pertains to the portion of tax applied to an individual's or entity's last dollar of income, under the federal tax system, which uses progressively higher rates for higher income levels.

Tax Bracket

Categories at varying tax rates applied to ranges of income; the higher the income, the higher the percentage of tax levied.

Progressive

Pertains to political and social movements that aim for reforms and advancements by advocating for changes in economic, social, and political structures.