Which of the Following Correctly Describes What the Fed Used

question 39

Multiple Choice

Which of the following correctly describes what the Fed used as monetary targets in the past?

• A)The Fed used M1 and M2 as targets after 1993.
• B)The Fed focused on M1 as a target after deregulation of the financial markets.
• C)The Fed increased its reliance on interest rate targets since the mid-1990s.
• D)After 1980 and before the 1990s,the Fed focused on interest rate targets.

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Definitions:

Confidence Interval

An interval of values, obtained from statistics of a sample, anticipated to envelop the value of a not yet identified parameter of the population.

Proportion Difference

A measure of the difference in proportions or percentages between two groups in comparative studies.

Pooled Proportion

The weighted average of proportions from different samples or groups, used in statistical analysis.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, often tested against an alternative hypothesis in statistical analyses.