Which of the Below Statements Is FALSE

question 40

Multiple Choice

Which of the below statements is FALSE?

• A) The Fed can affect the rate of growth in the money supply by various means besides its control of reserves in the banking system.
• B) A problem in the implementation of monetary policy is that the Fed has no direct control over the goals that are the final objectives of its policies.
• C) The growth in the money supply depends to a substantial extent on the preferences, actions, and expectations of numerous banks, borrowers, and consumers.
• D) The Fed uses one or more of its tools to affect what are called operating targets, which are monetary and financial variables whose changes tend to bring about changes in intermediate targets.

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Definitions:

Table

A systematic arrangement of data in rows and columns, facilitating easy comparison, analysis, and presentation of information.

Slope Coefficient

A measure in regression analysis that quantifies the change in the dependent variable for a one-unit change in an independent variable.

Correlation Coefficient

A measure ranging from -1 to 1 that indicates the strength and direction of the relationship between two variables.

Slope

In mathematics, the slope defines the steepness and direction of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.