Some Economists Are Concerned That by Holding Its Target for the Federal

question 61

Multiple Choice

Some economists are concerned that by holding its target for the federal funds rate close to zero for three years,the Fed's policy is actually

• A) causing inflation to increase.
• B) causing unemployment to increase.
• C) increasing the unemployment rate while lowering the natural rate of unemployment.
• D) creating deflation.

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Definitions:

U.S. Literary Celebrity

An American author whose work has gained extensive public attention and fame, often resulting in their becoming a notable figure within the literary culture.

Washington Irving

An American author, essayist, biographer, and historian of the early 19th century known for works such as "The Legend of Sleepy Hollow" and "Rip Van Winkle."

Theater

A branch of performing arts that involves live performers, actors, or actresses, presenting a real or imagined event before a live audience in a specific place.