When the Fed Wants to Signal the Public About the Direction

question 23

Multiple Choice

When the Fed wants to signal the public about the direction of monetary policy,it will likely use

• A)a change in the discount rate.
• B)open market operations.
• C)a change in the reserve requirement.
• D)a public announcement about a change in the targeted federal funds rate.
• E) all of the above

---

Definitions:

Facial Feedback Effect

A psychological theory that suggests the expressions on our face can influence our emotions, implying the act of smiling can make us feel happier.

Holding A Pen

The act of gripping a pen with the fingers and hand in a manner suitable for writing.

Stressful Situations

Circumstances or events that cause a physical, emotional, or psychological strain or tension in individuals.

Individuality

The quality or character of being an individual; the traits that make one person or thing distinct from all others.