Although Economists Have Argued Many Years About the Identity of Appropriate

question 50

Multiple Choice

Although economists have argued many years about the identity of appropriate operating and intermediate target variables, there is no dispute about the chief characteristics of a suitable operating or intermediate target. Which of the below is NOT a chief characteristic?

• A) linkage (an expected connection with the intermediate target)
• B) objectivity (decision-making eliminates personal experiences)
• C) observability (targets must be readily and regularly observable economic variables)
• D) responsiveness (respond quickly and in an expected way to the Fed's use of its tools)

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Definitions:

Extra Effort

The additional energy, time, or resources expended beyond the usual or expected level to achieve a goal or improve performance.

Enactive Mastery

refers to gaining confidence in one's skills through successful experiences or actions, essentially learning by doing.

Self-efficacy

Refers to an individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Experience Builds

The accumulation of knowledge or skill that comes from direct participation in events or activities over time.