Stephen Cecchetti Argues That the Fed Should

question 77

Multiple Choice

Stephen Cecchetti argues that the Fed should

• A)follow a precise mechanical rule.
• B)follow a rule that could vary some based on the economic forecasts of a forecasting model.
• C)Be allowed discretion but announce a numerical target for inflation.
• D)Have complete discretion without a rule and without needing to announce targets.

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Definitions:

Resiliency

The capacity to recover quickly from difficulties or adapt in the face of adversity, trauma, tragedy, threats, or significant sources of stress.

Loved One

A term used to describe someone whom an individual holds dear and has a deep affection for, often a family member or close friend.

Kübler-Ross's Stages

A theory outlining five stages of emotional and psychological response to grief and loss, often referred to as the "five stages of grief."

Terminally Ill

A condition in which a disease cannot be cured or adequately treated and is reasonably expected to result in death of the patient.