Why Doesn't the Fed Have Both a Money Supply Target

question 210

Multiple Choice

Why doesn't the Fed have both a money supply target and an interest rate target?

• A)Short-term interest rates do not respond to changes in the money supply,which the Fed can control.
• B)The Fed does not control money demand.
• C)The Fed cannot offset the impact of changes in cash management by the public or changes in lending policies of commercial banks on the money supply.
• D)Only the level of interest rates matters when we consider rates of growth in real GDP,employment,and rates of price inflation.

Acknowledge the importance and methods of establishing group guidelines and norms.

Recognize the role and methods of preliminary activities (e.g., interviews, pregroup meetings) in enhancing treatment group effectiveness.

Understand the concepts of functional and dysfunctional behaviors within groups and the role of the leader in managing these.

Recognize the aspects and importance of informed consent and establishing purpose within treatment groups.

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Definitions:

Business Ethics

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Conscious Marketers

Marketers who are aware of the impacts their strategies and actions have on society, the economy, and the environment, and thus make thoughtful and sustainable decisions.

Corporate Social Responsibility

Business practices that involve initiatives that benefit society and contribute positively to the community and environment.