The Federal Open Market Committee

question 12

Multiple Choice

The Federal Open Market Committee

• A)operates with almost complete discretion over monetary policy.
• B)is required to increase the money supply by a given growth rate each year.
• C)is required to keep short-term interest rates within a range set by Congress.
• D)is required by its charter to change the money supply using a complex formula that concerns the tradeoff between inflation and unemployment.

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Definitions:

Cult of Domesticity

A prevailing value system among the upper and middle classes during the 19th century in the United States and Great Britain that emphasized the perceived virtues of women in their roles as mothers and homemakers.

Feminine Ideals

Socially constructed notions that dictate the expected attributes, behaviors, and roles of women within a given society.

Market Economy

An economic system where decisions on production, investment, and distribution are based on supply and demand, with little government intervention.

Oscilloscope

A voltmeter that displays a waveform of voltage in proportion to its amplitude with respect to time.