A 1977 Amendment to the Federal Reserve Act of 1913

question 21

Multiple Choice

A 1977 amendment to the Federal Reserve Act of 1913

• A)requires the Federal Reserve to place more weight on promoting price stability than on promoting maximum employment.
• B)requires the Federal Reserve to place more weight on promoting maximum employment than on promoting price stability.
• C)requires the Federal Reserve to place equal weight on promoting price stability and maximum employment.
• D)says the Federal Reserve should promote price stability and maximum employment,but does not specify how the Federal Reserve should weight these goals.

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Definitions:

Draining

The act or process of depleting or being depleted of resources or energy.

Inert Substance

A substance that does not undergo chemical reactions under a set of given conditions, often used as a control in experiments.

Placebo

A harmless substance or treatment that has no therapeutic effect, used as a control in testing new drugs.

Relaxant

A substance or drug that reduces tension or strain in muscles, often used to alleviate muscle spasms or to induce relaxation.