When the Federal Reserve Engages in Forward Guidance, It

question 63

Multiple Choice

When the Federal Reserve engages in forward guidance, it:

• A) provides consumers with recommendations about the things that they should do financially over the next year.
• B) meets with congressional leaders to give guidance on fiscal policy.
• C) regulates key financial markets to prevent their failure as the economy moves forward.
• D) announces in advance the types of policies that it will enact over a time period into the future.

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Definitions:

Utilities

Services such as water, electricity, gas, and sewer services provided to consumers and businesses.

Allocate

The process of assigning or distributing resources or amounts to various accounts or periods.

Square Footage

The measurement of area, especially used in reference to the size of a building or room, calculated in square feet.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.