An Upward Shift in the Fed's Reaction Function Is Equivalent

question 117

Multiple Choice

An upward shift in the Fed's reaction function is equivalent to:

• A)a decline in the Fed's long-term target for inflation.
• B)an increase in the Fed's long-term target for inflation.
• C)an upward shift of short-run aggregate supply.
• D)a downward shift of short-run aggregate supply.

---

Definitions:

Federal Records

Documents created or received by a federal agency or employee under federal law or in connection with the transaction of public business.

Freedom of Information Act

Legislation permitting the complete or partial release of information and documents once withheld by the U.S. government.

State Records

Official documents and data maintained by government entities that can include vital statistics, educational, criminal, and civil records.

Federal Assistance

Financial or other support provided by the federal government to states, organizations, or individuals, often for specific projects or purposes.