Recent Policy Statements by the FOMC Announce and Explain Its

question 3

Multiple Choice

Recent policy statements by the FOMC announce and explain its:

• A)Targets for money growth with no mention of interest-rate targets
• B)Short-term interest-rate decisions with no mention of money growth targets
• C)Decisions for long-term interest rates
• D)Decisions for money-growth targets but also mentioning short-term interest-rate decisions

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Definitions:

Reinforcement

In behavioral psychology, a process that increases the likelihood of a behavior being repeated, which can be positive (adding a desirable stimulus) or negative (removing an aversive stimulus).

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.

Classical Conditioning

A learning technique in which ongoing association between two stimuli eventually leads to a response initially induced by the second stimulus being induced by the first stimulus alone.

Expectations

Beliefs or forecasts about future events or behaviors that can influence one's psychological and behavioral responses.