The Time Between When Federal Reserve Policymakers Decide to Close

question 57

Multiple Choice

The time between when Federal Reserve policymakers decide to close an output gap and when they act to change the fed funds rate is an example of:

• A) the outside lag in macroeconomic policy.
• B) a structural policy change.
• C) anchoring inflationary expectations.
• D) the inside lag in macroeconomic policy.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting rules globally recognized for preparing financial statements.

GAAP

Generally Accepted Accounting Principles; a set of accounting standards, principles, and procedures that companies must follow when compiling their financial statements in the U.S.

Balance Sheet

A financial report that captures a company's financial status at a particular moment, detailing its assets, liabilities, and shareholders' equity.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation and presentation of financial statements on a global scale.