The Fed's Difficulties in Producing Greater Monetary Control After October

question 95

Multiple Choice

The Fed's difficulties in producing greater monetary control after October 1979 were attributable to

• A)fluctuations in the economy and in financial markets.
• B)using free reserves as an operating target.
• C)the agreement with the Treasury to peg interest rates.
• D)using nonborrowed reserves as an operating target.

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