In Using an Interest Rate Target

question 44

Multiple Choice

In using an interest rate target,

• A)the rate is raised if there is a desire to slow down the level of economic activity.
• B)the rate is lowered if there is a desire to speed things up.
• C)the Fed has eliminated monitoring the money aggregates.
• D)Both a and b are correct.

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from their mean.

Scores

Numerical data representing individual performance or achievement in a test, assessment, or experimental condition.

Average Deviation

The average difference between each data point in a set and the mean of that set.