The Following Statement Is from the October 29, 2014, FOMC

question 37

Essay

The following statement is from the October 29, 2014, FOMC meeting:
"The Committee judges that there has been a substantial improvement in the outlook for the labor market since
the inception of its current asset purchase program. . . . Accordingly, the Committee decided to conclude its
asset purchase program this month. . . . To support continued progress toward maximum employment and
price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the
federal funds rate remains appropriate."
And from the December 16, 2015, statement:
"Given the economic outlook, and recognizing the time it takes for policy actions to affect future economic
outcomes, the Committee decided to raise the target range for the federal funds rate to 1/4 to 1/2 percent."
What is the importance of these statements?

Understand the concept of balanced trade.

Identify historical trends in trade surpluses and deficits for specific countries.

Understand the theory of comparative and absolute advantage in international trade.

Apply the principles of opportunity cost and comparative advantage to real-world scenarios.

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Definitions:

Ownership Interest

A legal or equitable claim in property, providing the holder with certain rights, such as use, enjoyment, and control.

Adverse Possession

Adverse possession is a legal principle under which a person who occupies someone else's land for an extended period, meeting certain requirements, may acquire legal ownership of that land without compensation.

Owner's Permission

Authorization granted by the owner for someone else to use or manage their property or assets.

Quitclaim Deed

A legal document transferring a grantor's interest in a property without making any guarantee of clear title.