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:

Grandparent

A parent of one's father or mother, who plays a unique role in the family structure, often providing support, wisdom, and cultural heritage.

Ethnicity

A social group that shares a common and distinctive culture, religion, language, or the like, often connected by a shared heritage and ancestry.

Social class

A division of a society based on social and economic status, influencing an individual's opportunities, lifestyle, attitudes, and behavior.

Grandmothers

Women who are the mothers of one’s parents, often playing a significant role in family structures and childcare.