List the Two Main Functions Performed by the Fed

question 144

Essay

List the two main functions performed by the Fed?

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Definitions:

Inevitable

Something that is certain to happen and cannot be prevented or avoided.

Illusory Correlations

The perception of a relationship between two variables when none actually exists.

Memory Biases

The tendency for memory to be distorted by previous experiences, desires, or the current emotional state.

Representativeness Heuristic

A belief that outcomes will always reflect characteristics of the process that generated them (e.g., an expectation that the outcome of a series of coin flips will always look random).