Forward Guidance Is

question 13

Multiple Choice

Forward guidance is:

• A) statements today about policy targets in the future.
• B) expansion of the supply of aggregate reserves beyond the amount needed to maintain the policy rate target.
• C) asset purchases that shift the composition of the Fed's balance sheet.
• D) statements of policy changes and dates those changes will take effect.

---

Definitions:

Neo-Freudians

A group of psychologists who, while inspired by Freud's theories, extended his ideas to include social and cultural factors in personality development and dynamics.

Psychoanalysis

A method of psychological therapy and analysis developed by Sigmund Freud, which emphasizes unconscious mental processes and childhood experiences as determinants of psychological health.

Freudian Theory

A set of psychoanalytic theories developed by Sigmund Freud that emphasizes unconscious motivations and conflicts as determinants of human behavior.

Modern Psychoanalytic Theory

An evolution of Freudian psychoanalysis that incorporates newer research and concepts, focusing on how early relationships shape the unconscious mind and influence behavior.