The Notion That the Appropriate Monetary Policy at All Times

question 33

Multiple Choice

The notion that the appropriate monetary policy at all times is one that requires the Federal Reserve to expand the money supply at a steady rate of 4 to 5 percent per year is an example of

• A) the rules of the game.
• B) the rule of reason.
• C) a rule of thumb.
• D) a rigid policy rule.
• E) a feedback policy rule.

---

Definitions:

Identity States

Psychological conditions representing different understandings and degrees of personal identity development.

Moratorium

Identity status, described by Marcia, in which a person is currently considering alternatives (in crisis) and seems headed for commitment.

Foreclosure

The legal process by which a lender seizes and sells a property after the borrower fails to meet the terms of the mortgage.

Crisis

A critical, potentially destabilizing situation requiring a decision or change, often leading to significant personal or collective development.