Intermediate Targets Are

question 11

Multiple Choice

Intermediate targets are

• A) interim goals set on the way to fully achieving policy goals.
• B) targets for policy goals that are of secondary importance.
• C) targets the Fed hopes to achieve by June of each year.
• D) financial variables, such as interest rates or monetary aggregates, the Fed believes will help it to achieve policy goals.

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Definitions:

Standard Of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or geographic area.

Economic Growth

A rise in the economic power to produce goods and services when comparing distinct periods.

Capital Formation

The process of accumulating assets and investments that are used for future production or economic growth.