In General,the Fed Has Not Embraced a Fixed-Growth-Rate Monetary Policy

question 123

Multiple Choice

In general,the Fed has not embraced a fixed-growth-rate monetary policy because

• A)its adoption would cost them their jobs
• B)no influential economists have yet come out in favor of it
• C)the Fed has to answer to Congress,and Congress is not in favor of it
• D)the Fed prefers active fiscal policy
• E)they believe the economy is too complex and too changeable to make such a policy work consistently

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Definitions:

Ethical Factors

Considerations related to morality, values, and principles that influence decision-making processes in business and other areas.

Economic Behavior

The study of how individuals, groups, and organizations make choices to allocate resources, including how they trade and make decisions under scarcity.

Ultimatum Game

A game in economic experiments where one player offers how to divide a sum of money with another player who can either accept or reject the offer.

Nudging

A concept in behavioral economics, proposing subtle interventions to influence the choices and behaviors of individuals without restricting options.