In November 1978,the Fed Announced a Stringent New Program to Combat

question 56

Essay

In November 1978,the Fed announced a stringent new program to combat inflation,which had gotten out of hand.The response in the financial markets was the Treasury bill yields increased while long-term yields dropped.Can you explain why?

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Definitions:

Conscientiousness

A personality trait characterized by being thorough, careful, or vigilant; implies a desire to do a task well.

Big Five Trait

Refers to five broad domains or dimensions of personality that are used to describe human personality. These are openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Temperament

The inherent part of an individual's personality, including aspects such as mood, behavior tendencies, and emotional reactivity.

Behavioral Style

The characteristic way in which an individual acts or behaves in different situations.