Which of the Following Is the Fed's Monetary Policy Instrument

question 57

Multiple Choice

Which of the following is the Fed's monetary policy instrument?

• A)the supply of reserves
• B)the federal funds rate
• C)the demand for reserves
• D)the output gap
• E)the core inflation rate

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Definitions:

Population Proportion

The fraction or percentage of a population that exhibits a particular trait or characteristic.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter at a given confidence level.

Population Proportion

The fraction of the population that possesses a particular attribute, characteristic, or trait.

Standard Normal Distribution

A probability distribution that has a mean of zero and a standard deviation of one, used in statistical analysis to represent standardized values of a dataset.