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.