All of the Following Have Enhanced the Fed's Credibility in Conducting

question 6

Multiple Choice

All of the following have enhanced the Fed's credibility in conducting monetary policy except

• A)following through with changes it has announced.
• B)revealing the Fed's target for the federal funds rate.
• C)making the minutes of the open market committee meetings public.
• D)discontinuing the policy of announcing whether it considered the economy to be at greater risk of inflation or recession following each FOMC meeting.

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Definitions:

Cognitive Psychology

is the study of mental processes such as "attention, language use, memory, perception, problem-solving, creativity, and thinking."

Tolman's Theories

The psychological theories proposed by Edward C. Tolman, emphasizing the importance of cognitive processes and expectations in learning, suggesting that behavior is purposeful and goal-directed.

Excitatory Potential

The potential of a neuron to become activated and fire an action potential, often influenced by the summation of excitatory and inhibitory inputs.

Frustration

An emotional state that occurs when a person is blocked from achieving a goal, leading to feelings of stress, anger, or irritability.