In the Period of 1979 to 1982, If the Fed

question 53

Multiple Choice

In the period of 1979 to 1982, if the Fed had set an interest rate target that was equal to the actual market interest rates that occurred, the: ?

• A) economy would have been better off.?
• B) target would not have been politically acceptable.?
• C) target would have been a federal funds rate of zero percent.?
• D) inflation rate would have risen further.

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Definitions:

Overdue Account Payable

An obligation or debt that a company has not paid by its due date.

Fiscal Year

A 12-month period that a company uses for accounting purposes and preparing financial statements.

Discounted Note

A promissory note that is issued at a price lower than its face value and repaid at its face value at maturity.

Cash Proceeds

The total amount of cash received from transactions, often relating to the sale of assets or products.