Janice Eberly on Fed Policy, US Debt, Inflation

Janice Eberly on Fed Policy, US Debt, Inflation

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses the challenges of fractured policy in America, focusing on economic growth and productivity. It highlights the Federal Reserve's approach to interest rates and the complexities of risk balancing. The impact of interest rates on the economy, particularly during a downturn, is examined, along with the lack of fiscal stimulus. The discussion also covers the US government's debt maturity structure and its implications. Finally, the market's response to rising issuance and the resulting business costs are analyzed, emphasizing the challenges in fighting inflation.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the main focuses of the Federal Reserve as discussed in the video?

Promoting international trade

Balancing risks while targeting interest rates

Increasing employment rates

Reducing taxes

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What complicates the Federal Reserve's decision-making process in a weakening economy?

Stable balance sheets

Low inflation rates

High employment rates

Increased impact of interest rate hikes

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a significant challenge for fiscal stimulus in the current economic climate?

Low consumer spending

High debt and financing costs

Strong international trade

Excessive government savings

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why does U.S. government debt tend to have a shorter maturity structure?

To reduce interest payments

Due to its special role in the global economy

To increase foreign investments

To stabilize the stock market

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How do higher interest rates affect American businesses according to the video?

They reduce the cost of capital

They make investment more costly

They increase consumer spending

They lower inflation