Under the Policy of Interest Rate Targeting Adopted by the Federal

question 12

Multiple Choice

Under the policy of interest rate targeting adopted by the Federal Reserve in the 1990s, the money supply is:

• A)increased at a constant rate.
• B)decreased at a constant rate.
• C)held constant.
• D)allowed to fluctuate.

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Definitions:

Central Tendency Error

A bias in evaluating others where assessments tend to cluster around a central point, ignoring extreme performances.

Performance Appraisal

A systematic evaluation process in which the work performance of an employee is assessed, typically by their manager, with feedback provided for future improvement.

Behaviorally Anchored Rating Scales

A performance appraisal method that uses specific examples of behavior to rate an employee's performance.

Performance Effectiveness

The level of success in accomplishing goals and resolving identified issues.