X C Chegg Search X + pt.php?attempt=671717&cmid=2041555 SHBOARD GGU.EDU HELP MY COURSES The Federal Open Market Committee decided today to keep its target for the federal funds rate at 5-1/4 percent. suggested somewhat firmer economic growth, and some tentative signs of stabilization have appeared in the housing market. Overall, the economy seems likely to expand at a moderate pace over coming quarters. Readings on core inflation have improved modestly in recent months, and inflation pressures seem likely to e over time. However, the high level of resour has the potential to s The Committee judges that some inflation risks remain. The extent and timing of a eded to address these risks will depend on the evolution of the outlook for both inflation and economic growth, as implied by incoming information. Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairmary Timothy F. Geithner, Vice Chairman; Susan S. Bies, Thomas M. Hoenig Donald L Kohn; Rand e; and Kevin M. Warsh The press release on FOMC decisions follows a standard form. The first paragraph states the decision. The next two paragraphs summarize the Fed's economic outlook, interpret the decision, and give the main reasons behind it, The key decision is whether to change the target for the federal funds rate. Changes are described in basis points. There are 100 basis points in one percentage point. This means, for example, that if the FOMC increases its target interest rate from 1% to 1.5%, there would be an increase of 50 basis points, or one half of a percentage point. According to the press release, the FOMC: Select one: A. Increased its target interest rate 25 basis points to a new level of 5.00% OB. Increased its target interest rate 50 basis points to a new level of 3.75% OC. Increased its target interest rate 25 basis points to a new level of 4.75% OD. The target rate was left unchanged Question 7 Not yet answered Points out of 1.00 P Flag question According to the press release, the type of inflation that concerns the FOMC is: Select one: OA commodity inflation OB. currency inflation OC. demand-pull inflation D. cost-push inflation Question 8 Not yet answered Points out of 1.00 P Flag question Log on to www.bis,gov and find the current unemployment rate. Assume the full-employment unemployment rate is 4.5%. What open market operations should the Fed initiate to help the economy reach its full-employment unemployment rate or head off a rise in inflation? Select one: A Sell government securities OB. Lower the discount rate OC. Lower the reserve requirement OD. Buy government securities Question 9 Not yet answered Points out of 1.00 P Flag question The equation of exchange can be stated as: Select one: OA MV = PQ OB. P= (MV) * Q OC. V= (PQ) * M OD. All of the above