A Consequence of the Impact Lag Is That the Fed

question 14

Multiple Choice

A consequence of the impact lag is that the Fed

• A)may not know the impact of a change in policy.
• B)might not be able to correct a mistaken policy soon enough.
• C)may not have current information about the state of the economy.
• D)may see the impact of a change in policy on inflation, but not economic growth.

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Definitions:

Labor Activism

Efforts and movements aimed at improving working conditions, wages, and the rights of workers.

Civil Rights Movement

A social movement in the United States during the 1950s and 1960s, led primarily by African Americans in an effort to end racial discrimination and gain equal rights under the law.

FEPC

The Fair Employment Practice Committee, established to prevent discrimination in the workplace during World War II.

The Foxes of Harrow

A historical novel by Frank Yerby, set in New Orleans during the 1820s, focusing on the life of an Irish immigrant.