Over Time, the Fed Has Used ____ in the Late

question 43

Multiple Choice

Over time, the Fed has used ____ in the late 1950s to mid-1970s, then ____ then ____ as its intermediate target.

• A) M1 growth rate; M2 growth rate; none
• B) No money growth target; M1 growth rate; M2 growth rate
• C) M2 growth rate; M1 growth rate; none
• D) No money growth target; M2 growth rate; M1 growth rate
• E) federal funds rate; M1 growth rate; M2 growth rate

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Definitions:

Evaluating Facts

The process of assessing the accuracy and relevance of information to determine truth.

Objective

Based on facts rather than feelings or opinions; not influenced by personal feelings or interpretations.

Syllogistic Steps

Logical sequences involved in the process of syllogism, a form of reasoning where a conclusion is drawn from two given or presumed propositions (premises) that share a common term.

Implicit Propositions

Assumptions within an argument that are not explicitly voiced but underlie the reasoning.