In the 1970s,the Fed Selected an Interest Rate as an Operating

question 57

Multiple Choice

In the 1970s,the Fed selected an interest rate as an operating target rather than a reserve aggregate primarily because it

• A)had no interest in targeting a monetary aggregate,as evidenced by its unwillingness to target a reserve aggregate.
• B)was still very concerned with achieving interest rate stability.
• C)was committed to targeting free reserves.
• D)was committed to the real bills doctrine.