The Federal Reserve Makes Decisions Regarding _____ Policy While the Congress

question 44

Multiple Choice

The Federal Reserve makes decisions regarding _____ policy while the Congress makes decisions regarding _____ policy.

• A) monetary; fiscal
• B) structural; fiscal
• C) fiscal; structural
• D) fiscal; monetary

---

Definitions:

Anchoring and Adjustment Heuristic

A cognitive bias where an individual relies too heavily on an initial piece of information (the "anchor") to make subsequent judgments or decisions.

Grandfather's Age

A term typically referring to the age of one's paternal or maternal grandfather, often used in contexts relating to genealogy or family history.

Information Overload

A state in which the amount of information available exceeds one's ability to process it effectively, often leading to stress or decision-making paralysis.

One-Shot Illusory Correlation

The cognitive bias to form a strong association between two unconnected events based on a single occurrence.