"As the Fed Chases Inflation, Critics Shout, 'Faster!'" "For Weeks

question 30

Multiple Choice

"As the Fed Chases Inflation, Critics Shout, 'Faster!'" "For weeks, the Fed has broadcast its intention to raise interest rates glacially." The Fed was moving slowly, according to an economist because "...the declining price of oil, economic fundamentals, including productivity and global competition, will keep inflation in check." The Fed, recognizing that the economy was improving stated it planned to "respond to changes in economic prospects as needed to fulfill its obligation to maintain price stability." Other economists disagree with the Fed's restrained policy as a "mistake."
www.nytimes, 7/1/2004
As a result of the Fed's policy, which of the rates will increase?

• A) the long-term interest rate
• B) the short-term interest rate
• C) the exchange rate
• D) All of the above answers are correct.

Recognize the concept and examples of postformal thinking.

Describe the characteristics and consequences of engaging in extreme sports and risky activities.

Comprehend the impact of early adulthood decisions on personal and social levels.

Grasp the concept of cognitive flexibility and its importance in navigating adulthood challenges.

---

Definitions:

Disbursements

Money paid out by a business or organization for various purposes, including expenses, investments, and dividends.

Average Daily Receipts

The average amount of cash that a business receives on a daily basis, calculated over a specific period.

Cheques

Written, dated, and signed instruments that direct a bank to pay a specific sum of money to the bearer or a designated party.

Clearing Times

The time period it takes for a financial transaction to be processed and settled.