One Thing the Fed Has Learned Over the Past Twenty-Five

question 69

Multiple Choice

One thing the Fed has learned over the past twenty-five years is:

• A) the money multiplier is fairly constant no matter what changes are made to the monetary base.
• B) the money multiplier is unstable over time.
• C) the money multiplier has a trend rate of growth that is fairly constant.
• D) it should focus its attention on targeting M2.

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Definitions:

Stage Theorists

Researchers or psychologists who propose that development occurs in distinct, sequential phases or stages.

Sigmund Freud

Austrian neurologist and the founding father of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Jean Piaget

A Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development stages.

Successive Changes

A process involving a series of modifications, adjustments, or developments that follow one after the other in a particular order or sequence.