Recent Financial Innovation Makes the Federal Reserve's Job of Conducting

question 16

Multiple Choice

Recent financial innovation makes the Federal Reserve's job of conducting monetary policy

• A)easier,since the Fed now knows what to consider money.
• B)more difficult,since the Fed now knows what to consider money.
• C)easier,since the Fed no longer knows what to consider money.
• D)more difficult,since the Fed no longer knows what to consider money.

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Definitions:

Reasoning

Reasoning is the cognitive process of thinking about something in a logical, rational way, to form conclusions, judgments, or inferences.

System II Thinking

is a mode of thought characterized by more deliberate, conscious, and analytical reasoning, often involving complex judgments or problem-solving.

System I Thinking

A term in psychology that refers to the fast, automatic, intuitive approach of decision-making, as opposed to slow, deliberate, analytical thinking.

Confirmation Bias

The habit of seeking out, understanding, preferring, and remembering data in a manner that validates one's already established views or theories.