The Federal Reserve

question 88

Multiple Choice

The Federal Reserve

• A)does not have an inflation targe; if it did it would likely be 1% or less.
• B)does not have an inflation target; if it did it would likely be in the range of 2%.
• C)does have an inflation target; it is 1%.
• D)does have an inflation target; it is a range from 1-3%.

---

Definitions:

Subtract

The mathematical process of deducting one number from another.

Correlated

Implies a statistical relationship where two variables move together in some predictable pattern.

Error Terms

Components of a statistical model that represent the difference between observed and predicted values.

Time

The ongoing and continuous sequence of events that occur in succession, from the past through the present to the future.