To Get Around the Problems of Information Lag and Impact

question 35

Multiple Choice

To get around the problems of information lag and impact lag, Alan Greenspan led the Fed in using which of these methods for a period of nearly 20 years, and with what results?

• A)Greenspan used explicit inflation targeting and met many inflation goals; inflation stayed relatively low and recessions were modest.
• B)Greenspan used implicit inflation targeting to stop inflation before it began; inflation stayed relatively low and recessions were modest.
• C)Greenspan used implicit inflation targeting to stop inflation before it began; inflation was relatively high, nonetheless.
• D)Greenspan used explicit inflation targeting but met few inflation goals; inflation was relatively high.

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Definitions:

Subculture

A cultural group within a larger culture, often with beliefs or interests distinct from those of the larger culture.

Majority Culture

The set of norms, values, and practices that are held by the dominant or most influential group within a society.

Germ Theory

The scientific theory that certain diseases are caused by the invasion of the body by microorganisms, organisms too small to be seen except through a microscope.

Biomedical

Pertaining to the application of natural sciences, especially biology and physiology, to clinical medicine.