Suppose That the Federal Reserve Open Market Committee Adheres to the Ideas

question 16

Multiple Choice

Suppose that the Federal Reserve Open Market Committee adheres to the ideas expressed by ________.If the economy moves into a recession,the Fed would recommend that the federal funds target rate decrease as long as the inflation rate did not rise above the publicly announced goal for inflation.

• A)the gold standard
• B)the monetarist school of thought
• C)inflation targeting
• D)the Taylor Rule

---

Definitions:

Equity Game

A scenario or experiment in psychology and economics that studies people's concepts of fairness and distribution of resources.

Moral Dilemmas

Situations in which a person must choose between two or more actions, each of which is morally demanding or where the right course of action is not immediately clear.

Moral Intuitions

Judgments (about whether an action is right or wrong) that occur automatically and rely on emotional feelings.

Cooperation

Working together with someone for mutual or reciprocal benefit.