The National Economic Objectives That the Fed Attempts to Achieve

question 68

Multiple Choice

The national economic objectives that the Fed attempts to achieve include all the following actions EXCEPT:

• A) promoting economic growth accompanied by full employment.
• B) maintaining moderate long-term interest rates.
• C) keeping the price level stable.
• D) keeping tax rates low.

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Definitions:

Electrical Generator

A device that converts mechanical energy into electrical energy, typically through rotating a coil within a magnetic field.

Externality

A cost or benefit arising from an economic activity that affects third parties who did not choose to incur that cost or benefit.

Incentive

Something that motivates or encourages an individual or entity to act in a certain way.

Costs And Benefits

This is an analysis approach that compares the potential outcomes and implications, in terms of costs and benefits, of an action or decision.