The Monetary Policy Reaction Curve

question 73

Multiple Choice

The monetary policy reaction curve:

• A) is the guideline the Fed publishes in setting their interest rate target.
• B) approximates the behavior of central bankers.
• C) has remained fairly constant over the years.
• D) is set by Congress and given to the Fed as a guideline to follow.

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Definitions:

Reflexes

Automatic, involuntary responses to specific stimuli that are hardwired into the nervous system.

Sensory Stimuli

External factors or occurrences that are detected by the body's senses, leading to responses or reactions.

Ethogram

A catalog or inventory of all of the behaviors or actions exhibited by a particular animal species in a specific environment.

Fixed Action Pattern

A sequence of instinctual behaviors that once started, continue to completion without further external triggers.