Most Critics Believe That the Fed's Early Attempt at Monetary

question 16

Multiple Choice

Most critics believe that the Fed's early attempt at monetary targeting under Arthur Burns failed because he used

• A)free reserves as an operating target.
• B)the federal funds rate as an operating target.
• C)M1 instead of M2 as an intermediate target.
• D)M2 instead of M1 as an intermediate target.

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Definitions:

Glutamate

A major neurotransmitter in the brain that plays an important role in learning and memory.

Excitatory Transmitter

A type of neurotransmitter that promotes the firing of neurons, facilitating brain and body activities.

GABA

Gamma-Aminobutyric Acid, a main inhibitory neurotransmitter in the mammalian central nervous system, playing a key role in reducing neuronal excitability throughout the nervous system.

Inhibitory Transmitter

A neurochemical substance that prevents or reduces the activity of neurons or nerve cells.