The Proposition That the Fed Should Concentrate on Price Stability

question 45

Multiple Choice

The proposition that the Fed should concentrate on price stability rather than reducing unemployment is

• A)generally accepted by politicians, although few economists accept this proposal.
• B)largely accepted by most economists, although politicians do not agree.
• C)highly debatable because many do not agree that price stability should be the most important goal.
• D)simply incorrect, and no one accepts this idea anymore.

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Definitions:

Spinal Cord

The cylindrical bundle of nerve fibers and tissue that is connected to the brain and runs down the vertebral column, transmitting signals to and from the brain.

Hair Cells

Sensory cells located in the inner ear, responsible for converting sound vibrations into electrical signals that can be interpreted by the brain.

Vestibular System

The sensory system that contributes to balance and spatial orientation for the purpose of coordinating movement with balance.

Action Potentials

Electrical impulses that are part of the process that cells use to communicate with each other, crucial for the functioning of nerves and muscles.