If the Fed Raises Its Target for the Federal Fund

question 191

Multiple Choice

If the Fed raises its target for the federal fund rate,this indicates that

• A)the Fed is pursuing an expansionary monetary policy.
• B)the Fed is pursuing a contractionary monetary policy.
• C)the Fed is attempting to combat deflation.
• D)The Fed is concerned that the growth in aggregate demand is too slow to keep up with potential GDP.

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Definitions:

Fight Or Flight

A physiological response to perceived harmful events, attacks, or threats to survival, triggering a choice to either confront the situation aggressively or flee from it.

General Adaptation Syndrome

A theory by Hans Selye that describes the three stages of response to stress: alarm, resistance, and exhaustion.

Catharsis

The process of releasing and thereby providing relief from strong or repressed emotions, often through art, dialogue, or reflection.

Self-Esteem

A person's personal and subjective assessment of their own value in terms of emotions.