Which of the Following Characterizes the Fed's Ability to Prevent

question 214

Multiple Choice

Which of the following characterizes the Fed's ability to prevent recessions?

• A)The Fed is able to "fine tune" the economy and entirely eliminate recessions.
• B)The Fed is incapable of changing aggregate demand through its monetary policy tools.
• C)The Fed is able to keep a recession shorter and milder than it would otherwise be.
• D)The Fed is able to eliminate the business cycle and achieve absolute price stability.

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Definitions:

Histoplasma Capsulatum

A fungus that can cause histoplasmosis, a respiratory disease, when its spores are inhaled from contaminated environments.

Dermatophytes

A group of fungi that cause skin, hair, and nail infections by feeding on keratin in these tissues.

Coccidioides Immitis

A fungus that can cause coccidioidomycosis, also known as Valley fever, which is a disease that affects the lungs and can spread to other parts of the body.

Protist

A diverse group of eukaryotic microorganisms, which are neither plants, animals, nor fungi, and share some characteristics with those groups.