The Fed (Which Is the Central Bank in the U

question 16

Multiple Choice

The Fed (which is the central bank in the U.S.) greatly increased the monetary base in 2009 and 2010 by purchasing assets in an attempt to boost the economy,while making it known that they intended on selling these assets once the economy showed signs of stability,and at the same time keep a watchful eye on possible inflation.The Fed's inflation expectations would most likely be considered as ________,and the Fed was able to increase the monetary base without causing expected inflation to increase because their intentions and statements were generally considered ________.

• A) adaptive; not credible
• B) adaptive; credible
• C) rational; not credible
• D) rational; credible

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Definitions:

Levels Of Involvement

The different degrees of interest and concern that consumers show towards a product or a buying decision, ranging from high to low.

Strength Of Commitment

The degree of dedication or loyalty an individual has towards a cause, activity, or relationship.

Attitude Object

Any entity, whether a person, product, social group, or concept, towards which an individual holds a specific attitude.

Social Judgment Theory

A theory that proposes individuals make judgments about ideas or items, based on what they already believe, their anchor points.