Stephen Cecchetti Argues That the Fed Should

question 108

Multiple Choice

Stephen Cecchetti argues that the Fed should

• A) follow a precise mechanical rule.
• B) follow a rule that could vary some based on the economic forecasts of a forecasting model.
• C) be allowed discretion but announce a numerical target for inflation.
• D) have complete discretion without a rule and without needing to announce targets.

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Definitions:

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A computer interface feature that allows users to move objects or select options on a screen by clicking on them with a mouse or other input device, then dragging and dropping them to a new location.

Corporate Ladder

A metaphor for the hierarchy within a corporation or business environment, where individuals aim to climb from lower to higher positions of authority and responsibility.

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An activity involving mental or physical effort done in order to achieve a purpose or result.

Career

A long-term professional journey that an individual embarks on, which often includes changes in jobs, learning new skills, and progressing in job roles.