The Fed's Decisions

question 24

Multiple Choice

The Fed's decisions:

• A) are always right.
• B) affect the economy with no lag at all.
• C) often take months for their effects to be felt in the economy.
• D) never help avoid recessions.

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Definitions:

Acetyl Salicylic Acid

A chemical compound better known as aspirin, used as an anti-inflammatory, analgesic, and antipyretic.

Buffer

Substance or group of substances that tend to resist pH changes of a solution, thus stabilizing its relative acidity and basicity.

Inorganic

Refers to compounds that generally do not contain carbon-hydrogen bonds, often associated with minerals and non-living matter.

Molecule

The smallest particle in a chemical element or compound that has the chemical properties of that element or compound.