In the 1970s,the Fed Selected an Interest Rate as an Operating

question 57

Multiple Choice

In the 1970s,the Fed selected an interest rate as an operating target rather than a reserve aggregate primarily because it

• A)had no interest in targeting a monetary aggregate,as evidenced by its unwillingness to target a reserve aggregate.
• B)was still very concerned with achieving interest rate stability.
• C)was committed to targeting free reserves.
• D)was committed to the real bills doctrine.

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Definitions:

Barriers

obstacles or factors that prevent progress, communication, or the achievement of objectives.

Social Perception

The process by which individuals form impressions and make judgments about others based on available social information, including verbal and non-verbal cues.

Projection

Overestimating the number of people who share our own beliefs, values, and behaviors.

Achievement-Oriented

Describes a focus or disposition towards setting and accomplishing challenging goals, often with a high standard of excellence.