Sometimes the Fed's Goals Conflict,and the Fed Must Emphasize One

question 88

Multiple Choice

Sometimes the Fed's goals conflict,and the Fed must emphasize one goal over another.Which of the following is a goal of the Fed that might conflict with its goal of full employment?

• A) promoting economic growth
• B) promoting an equitable distribution of income
• C) keeping the price level stable
• D) keeping tax rates low

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Definitions:

Lowest Terms

The simplest form of a fraction, where the numerator and denominator are reduced to the smallest possible numbers.

Express

Refers to a service or method that is designed to be faster or more efficient than standard options.

CPI

The Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Salary

Regular payment made by an employer to an employee, especially a professional or white-collar worker.