"As the Fed Chases Inflation, Critics Shout, 'Faster!'" "For Weeks

question 190

Multiple Choice

"As the Fed Chases Inflation, Critics Shout, 'Faster!'" "For weeks, the Fed has broadcast its intention to raise interest rates glacially." The Fed was moving slowly, according to an economist because "...the declining price of oil, economic fundamentals, including productivity and global competition, will keep inflation in check." The Fed, recognizing that the economy was improving stated it planned to "respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability." Other economists disagree with the Fed's restrained policy as a "mistake."
Www) nytimes, 7/1/2004
The goal of the Fed's policy in 2004 was to decrease

• A) the exchange rate
• B) consumption expenditure
• C) the long-term interest rate
• D) the short-term interest rate

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Definitions:

Experimental Procedure

A specific set of steps in scientific research designed to test a hypothesis under controlled conditions.

Debriefing

A step at the end of an experiment in which the researcher explains the study’s purpose and design to each participant and undoes any manipulations to participants’ beliefs or state.

Hidden Manipulation

Hidden manipulation involves discreet or covert actions aimed at controlling or influencing others without their conscious awareness.

APA Regulations

Guidelines set by the American Psychological Association concerning ethical practices in psychological research and clinical practice.