In Today's Fed,its Primary Strategy Is to

question 51

Multiple Choice

In today's Fed,its primary strategy is to

• A)target the federal funds rate in the short-run,target inflation in the long-run.
• B)target inflation
• C)target the money supply.
• D)target the federal funds rate in the short-run,balance inflation and output goals in the long-run.

---

Definitions:

Noncash Expense

Expenses recorded on an income statement that do not involve a direct cash outflow, such as depreciation or amortization.

Traditional Income Statement

A financial statement that displays a company's revenues, expenses, and net income over a specific period, typically emphasizing historical cost accounting.

Cash Flows

The net amount of cash and cash-equivalents moving into and out of a business.

Financial Leverage

The use of borrowed money (debt) to finance the acquisition of assets, with the expectation that the profits will be greater than the interest payable.