The Operational Goals the Fed Uses for Its Monetary Policy

question 22

Multiple Choice

The operational goals the Fed uses for its monetary policy objectives are the

• A) federal funds rate and the supply of reserves.
• B) the demand for reserves and the supply of reserves.
• C) supply of reserves and the output gap.
• D) the core inflation rate and the output gap.
• E) federal funds rate and the core inflation rate.

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Definitions:

North American Free Trade Agreement

An agreement among the United States, Canada, and Mexico designed to remove tariff barriers between the three countries.

Signatories

The people, countries, or entities that have signed an agreement, especially a country that has signed a treaty.

United States

A country located in North America, composed of 50 states, a federal district, five major self-governing territories, and various possessions.

Exportation

The act of sending goods or services to another country for sale or trade.