Which of the Following Statements Is an Example of the Fed's

question 73

Multiple Choice

Which of the following statements is an example of the Fed's conditional commitment policy?

• A)"In these circumstances,the Committee believes that policy accommodation can be maintained for a considerable period."
• B)"The Committee anticipates that weak economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time."
• C)"Policy accommodation can be removed at a pace that is likely to be measured."
• D)"The exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent,and inflation between one and two years ahead is projected to be no more than a half percentage point above the Committee's 2 percent longer-run goal."

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Definitions:

Centralization

Centralization refers to the concentration of decision-making authority and control at the top levels of an organizational hierarchy.

Decision Making

The process of selecting a course of action from multiple alternatives to achieve a desired outcome.

Divisionalized Form

A type of organizational structure where operations are separated into semi-autonomous units or divisions, each responsible for its own performance.

Centralized Form

An organizational structure where decision-making authority is concentrated at the top levels, with little autonomy given to lower levels.