The Federal Reserve has been ________ preemptive because of the changing view that monetary policy has to be ________ looking.
A)more;forward
B)more;backward
C)less;forward
D)less;backward

Question

Quizplus · Accepted Answer

Preemptive action means taking action before a problem arises. In the context of the Federal Reserve's monetary policy, being preemptive means adjusting interest rates before inflation becomes a problem. The changing view that monetary policy has to be forward-looking means that the Federal Reserve is taking action based on future projections of inflation and economic growth, rather than waiting for current data to confirm problems. Therefore, the best choice is A) more; forward.

The Federal Reserve Has Been ________ Preemptive Because of the Changing