Article Summary Concerned About Low Inflation,Federal Reserve Bank of Minneapolis President Narayana

question 193

Multiple Choice

Article Summary
Concerned about low inflation,Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said the Fed needed a more aggressive stimulus policy than the setting of near-zero interest rates,and added that negative interest rates could be an effective policy tool.In a September 2015 interview,Kocherlakota stated "Given the inflation outlook,given how low inflation is expected to be,to ensure the credibility of our inflation target,taking a more accommodative stance in September would have been totally justified." While the Federal Open Market Committee chose to hold rates near zero in their September 2015 meeting,Fed Chair Janet Yellen announced that a rate increase would be warranted by the end of the year,and that "negative interest rates was not something that we considered very seriously at all today."
-Refer to the Article Summary.When Fed Chair Janet Yellen announced that a rate increase would be warranted by the end of the year,she was was referring to the

• A)prime rate.
• B)federal funds rate.
• C)long-term real rate of interest.
• D)required reserve rate.

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Definitions:

Hate Crimes

Hate crimes are criminal acts motivated by bias or prejudice against particular groups, often based on race, religion, sexual orientation, or nationality.

Bias

A prejudice in favor or against something, usually in a way considered to be unfair.

Victim's Race

The racial or ethnic background of a crime victim, which can sometimes influence the legal process, public perception, and media coverage.

Ethnicity

A categorization of people based on shared cultural, linguistic, or ancestral traits.