The FOMC Controls the Real Interest Rate

question 99

Multiple Choice

The FOMC controls the real interest rate:

• A) if inflation changes quickly.
• B) if inflation doesn't change quickly.
• C) only if it adjusts the federal funds rate to match the changes in the rate of inflation.
• D) only on an annual basis.

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Definitions:

Myelination

The process of forming a myelin sheath around a nerve to allow it to transmit signals more rapidly.

Reticular Formation

A part of the brain involved in attention, sleep, and arousal.

Electrochemical

Pertaining to the processes that involve both electrical and chemical changes.

Synaptic Cleft

The small gap at a synapse between two neurons, where neurotransmitters are released to transmit signals from one neuron to another.