If the Federal Reserve Attempts to Continue Reducing Unemployment by Manipulating

question 132

Multiple Choice

If the Federal Reserve attempts to continue reducing unemployment by manipulating monetary policy,which of the following would you expect to see?

• A)The Fed's policies will be deflationary.
• B)The Fed's policies will be inflationary.
• C)The rate of inflation will fall as the Fed tries to reduce the unemployment rate.
• D)The Fed will reduce the natural rate of unemployment.

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Definitions:

Past Actions

Refers to actions or decisions taken in the past that have potential implications or effects in the present or future.

Valid Consideration

A necessary element in the formation of a contract, referring to something of value that is exchanged between the parties.

Sham

A pretense or fake transaction intended to deceive others or for a purpose contrary to law or public policy.

Lack of Consideration

A situation in contract law where an agreement lacks the exchange of something of value, rendering the contract potentially unenforceable.