An Inflation Rate Targeting Rule

question 158

Multiple Choice

An inflation rate targeting rule

• A) reduces uncertainty about monetary policy.
• B) will not work if the Fed continues to sue open market operations.
• C) has been adopted the by the Fed in response to the financial crisis of 2008-2009.
• D) means that the inflation rate must exceed 5 percent in order for the rule to be effective.

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Definitions:

Glycolysis

A metabolic process that breaks down glucose to produce energy in the form of ATP.

Pyruvate

Pyruvate is a key intermediate in several metabolic pathways, including glycolysis, where it can be converted into acetyl-CoA for entry into the Krebs cycle or used for gluconeogenesis.

Anaerobic Respiration

Breakdown of glucose in the absence of oxygen to produce lactic acid and two ATPs; consists of glycolysis and the reduction of pyruvic acid to lactic acid.

Aerobic Respiration

Breakdown of glucose in the presence of oxygen to produce carbon dioxide, water, and approximately 38 ATPs; includes glycolysis, the citric acid cycle, and the electron-transport chain.