In Recent Years,the Fed Has Chosen to Target Interest Rates

question 191

Multiple Choice

In recent years,the Fed has chosen to target interest rates rather than the money supply because

• A)Congress passed a law requiring them to do so.
• B)the President requested them to do so.
• C)the money supply is hard to measure with sufficient precision.
• D)changes in the interest rate change aggregate demand,but changes in the money supply do not.

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Definitions:

Consequences

The outcomes or effects that result from a particular action or set of actions, often used in moral and ethical considerations to evaluate the rightness of actions.

Categorical Imperatives

Fundamental principles in Kantian ethics that dictate how one should act, regardless of personal desires or goals.

Reason and Emotion

The interplay between cognitive processes of logical thinking and the subjective experience of feelings, both influencing human decision-making and behavior.

Ethical Rules

Guidelines established by societies or organizations to dictate what behaviors are considered moral or right.