Because the Fed Can Easily Provide Too Much or Too

question 50

Multiple Choice

Because the Fed can easily provide too much or too little response to economic shocks,many economists advocate:

• A) policy discretion.
• B) policy rules.
• C) no response to any shock.
• D) a wait-and-see policy.

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Definitions:

Identical Twins

Twins who develop from a single fertilized egg, therefore sharing the same genes.

40-50 Percent

A statistical range indicating that between forty to fifty percent of a specified population or quantity falls within a certain criterion or condition.

Diathesis-Stress Model

A psychological theory that explains behavior as a predisposed vulnerability together with stress from life experiences.

Biological Predisposition

The inherent likelihood due to genetic factors to develop certain conditions or behaviors.