Reduced Macroeconomic Variability in the U

question 1

Multiple Choice

Reduced macroeconomic variability in the U.S. since the 1981 has all of the following benefits EXCEPT:

• A) improving market functioning.
• B) making business planning easier.
• C) reducing resources devoted to managing inflation risks.
• D) allowing the Fed to pursue accommodating policy.

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Definitions:

Atm

A unit of pressure, also known as atmosphere, approximately equal to the earth's atmospheric pressure at sea level.

Temperature

A measure of the average kinetic energy of the particles in a system, signifying how hot or cold the system is.

°C

Degrees Celsius, a unit of temperature on the Celsius scale, where 0°C represents the freezing point of water, and 100°C its boiling point at sea level.

Atm

Standard atmosphere, a unit of pressure defined as 101,325 Pa; also used to denote the atmospheric pressure at sea level.