In Response to an Unanticipated Tightening of Monetary Policy,the Fed

question 50

Multiple Choice

In response to an unanticipated tightening of monetary policy,the Fed funds rate ________ at first,then ________ after 6 to 12 months.

• A)rises; returns most of the way to its original value
• B)falls; returns most of the way to its original value
• C)remains roughly unchanged; rises significantly
• D)remains roughly unchanged; falls significantly

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Definitions:

IgE

Immunoglobulin E, a class of antibodies produced by the immune system that plays a key role in allergic reactions.

Acquired Immunodeficiency Syndrome

A chronic, potentially life-threatening condition caused by the HIV virus, which damages the immune system.

Abbreviation

An abridged version of a word or phrase.

Folvite

A pharmaceutical form of folic acid, used to treat or prevent low blood levels of folate.