The Fed's Goal of Interest Rate Stability

question 53

Multiple Choice

The Fed's goal of interest rate stability

• A)was formally abandoned in 1998.
• B)is motivated by political pressure as well as by a desire for a stable saving and investment environment.
• C)is undermined by actions the Fed takes to further its goal of stability in financial markets and institutions.
• D)is undermined by actions the Fed takes to further its goal of price stability.

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Definitions:

Drug Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs, leading to addiction or other negative outcomes.

Poverty

The state of having insufficient financial resources to meet basic living expenses, such as food, clothing, and housing.

Incest

Sexual relations between people classified as being too closely related to marry each other, considered a taboo and illegal in many societies.

Stepfathers

Male figures who are married to one's parent after the dissolution of the biological parents' marriage, not biologically related to the child.