The Fed Has Ignored Advice to Use a Broad Variable

question 35

Multiple Choice

The Fed has ignored advice to use a broad variable such as the stock of nonfinancial credit or nominal GDP as an intermediate target because

• A)such broad targets are not allowable under the provisions of the Federal Reserve Act.
• B)such broad targets are not easily measurable.
• C)such broad targets are not easily controllable.
• D)of congressional pressure to use M1 as the intermediate target.

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Definitions:

Free Black Men

African American males who were not enslaved and lived in the United States before the abolition of slavery in 1865.

Civil War

A conflict from 1861 to 1865 in the United States between the Northern states (Union) and the Southern states (Confederacy) primarily over the issues of slavery and states’ rights.

Conflation

The act of merging or blending two or more distinct elements, ideas, or concepts into a single, unified entity.

Racial Stigma

The societal disapproval or discrimination against individuals based on racial stereotypes or prejudices.