Yellen Says Fed's Focus Has Shifted to Sustaining Growth

Yellen Says Fed's Focus Has Shifted to Sustaining Growth

Assessment

Interactive Video

Business

University

Hard

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The video discusses the current economic policy stance, emphasizing the need to maintain progress by transitioning to a more neutral monetary policy. It explains the shift from aggressive economic stimulation to a balanced approach, aiming to gradually raise interest rates to prevent overheating and inflation. The goal is to avoid rapid rate increases that could lead to a recession, ensuring the economy remains stable and aligned with expectations.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main goal of shifting to a neutral monetary policy stance?

To accelerate economic growth rapidly

To maintain economic progress without overstimulation

To decrease inflation to zero

To increase government spending

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does a 'neutral stance' in monetary policy refer to?

A policy that increases taxes significantly

A policy that focuses solely on reducing unemployment

A policy that neither stimulates nor restricts economic growth

A policy that aims to stop all economic activities

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it important to gradually increase short-term interest rates?

To decrease the value of the currency

To prevent the economy from overheating

To ensure the economy overheats

To increase the national debt

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What could be a consequence of raising interest rates too quickly?

A potential recession

A decrease in inflation

A rapid increase in economic growth

An increase in government revenue

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is it crucial to be ahead of the curve in monetary policy adjustments?

To increase the national debt

To decrease the unemployment rate to zero

To avoid the need for rapid rate increases

To ensure inflation rises significantly