If the Current Rate of Inflation Is 4% and the Target

question 43

Multiple Choice

If the current rate of inflation is 4% and the target rate of inflation is 2%, and output is 3% above its potential, the target federal funds rate would be:

• A)7%.
• B)8.5%.
• C)5%.
• D)4.5%.

---

Definitions:

Motor Functions

Physical activities and movements controlled by the brain and nervous system, such as walking, grasping, and swallowing.

Gross Motor Skills

Physical abilities involving large muscle movements, such as crawling, walking, and jumping, crucial for mobility and coordination.

Running

A form of physical activity where an individual moves rapidly on their feet.

Jumping

A physical action involving pushing the body off the ground with one or both feet and landing.