In 1975 Congress Passed a Resolution That the Fed Must

question 41

Multiple Choice

In 1975 Congress passed a resolution that the Fed must publish its targets for growth in the money supply.The general effect of that resolution has been to

• A) noticeably restrict the Fed's power.
• B) curb the Fed's power over monetary policy but enhance its power over fiscal policy.
• C) give the Fed the right to set a ceiling on commercial banks' interest rates for the first time.
• D) force the Fed to rely more heavily on changes in the reserve ratio.
• E) have some impact; however, it has been difficult to measure just how much or at what cost.

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Definitions:

Coefficient Of Correlation

A measure that indicates the extent to which two variables change together, and the direction of their relationship, with a range from -1 to 1.

Coefficient Of Determination

A statistical measure that assesses the proportion of variance in a dependent variable predictable from an independent variable, often denoted as R².

Coefficient Of Correlation

A measure that determines the degree to which two variables' movements are associated, ranging from -1 to 1.

Independent Variable

A variable that is manipulated in an experiment to observe its effect on the dependent variable, without being influenced by other variables.