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%.

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Definitions:

Central Deafness

A type of hearing loss which is caused by damage to the central nervous system rather than the ear itself.

Taste Receptor Cells

Specialized cells located on the taste buds of the tongue that detect chemical substances in food, allowing the perception of taste.

Papillae

Small protrusions on the surface of the tongue that contain taste buds and aid in the sensation of taste.

Taste Buds

Structures along the sides of many of the tongue’s papillae that are composed of 60 to 100 receptor cells for taste.