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

question 190

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
The goal of the Fed's policy in 2004 was to decrease

• A) the exchange rate
• B) consumption expenditure
• C) the long-term interest rate
• D) the short-term interest rate

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Definitions:

Paracerceis Sculpta

A species of isopod known for its complex social structure and distinct sexual dimorphisms; a subject in studies of sexual selection.

Phenotypes

The observable physical or biochemical characteristics of an organism, as determined by both genetic makeup and environmental influences.

Conditional Strategy

A behavioral strategy that varies depending on the conditions or context in which an individual finds itself.

Sexual Selection

A mechanism of evolution where certain traits increase an individual's chance of reproducing by making them more attractive or superior in competition for mates.