The Federal Reserve

question 232

Multiple Choice

The Federal Reserve

• A) does not have an inflation target; if it did it would likely be 1% or less.
• B) does not have an inflation target; if it did it would likely be in the range of 2%.
• C) does have an inflation target; it is 1%.
• D) does have an inflation target; it is a range from 1-3%.

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Definitions:

Foreign Investments

Investments made by individuals, companies, or governments in assets or business ventures in another country.

Charitable Donations

Financial or material contributions made to non-profit organizations or causes without expecting anything in return.

Unfavorable Balance

A situation where a country imports more than it exports, resulting in a trade deficit.

Balance of Trade

The difference in value between a country's imports and exports over a given period, indicating trade surplus or deficit.