The Federal Open Market Committee's "balance of risks" is an assessment of whether,in the future,its primary concern will be

Question

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The "balance of risks" refers to the potential threats to the economy in the future. The FOMC's primary concern is often with managing inflation while also promoting economic growth. Therefore, the assessment of whether higher inflation or a weaker economy presents a greater risk reflects the committee's priorities. Higher inflation could lead to a deterioration of economic indicators, while a weaker economy might struggle to maintain stable prices. Choice C is the best option because it presents the two most essential variables influencing the FOMC's policy decisions.

The Federal Open Market Committee's "Balance of Risks" Is an Assessment