The Ability of the Federal Reserve to Use Monetary Policy

question 82

Multiple Choice

The ability of the Federal Reserve to use monetary policy to affect economic variables such as real GDP ultimately depends upon its ability to affect

• A)tax rates.
• B)real interest rates.
• C)nominal interest rates.
• D)foreign exchange rates.

---

Definitions:

Pectoralis Major

A large chest muscle that contributes to the shoulder joint's movement and the arm's rotation inward.

Deltoid

A large, triangular muscle covering the shoulder joint that is responsible for lifting the arm and giving the shoulder its range of motion.

Biceps Brachii

A muscle of the upper arm that is involved in the flexion of the forearm and supination of the forearm.

Serratus Anterior

The serratus anterior is a muscle that originates on the surface of the upper eight or nine ribs and inserts on the medial border of the scapula, playing a key role in the movement of the shoulder.