If the Desired Intermediate Target Is a Monetary Aggregate,which of the Following

question 74

Multiple Choice

If the desired intermediate target is a monetary aggregate,which of the following would be the most preferred policy instrument?

• A)The federal funds rate
• B)The 90-day T-bill rate
• C)The 180-day T-bill rate
• D)The monetary base

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Definitions:

Vasopressin

A hormone produced by the hypothalamus and stored in the pituitary gland, playing a key role in regulating water balance and blood pressure.

GnRH

Gonadotropin-releasing hormone, a hormone responsible for the release of follicle-stimulating hormone (FSH) and luteinizing hormone (LH) from the anterior pituitary gland.

TSH

Thyroid-Stimulating Hormone, a pituitary gland secreted hormone that regulates the production of hormones by the thyroid gland.

Thyroid Hormones

Hormones produced by the thyroid gland, such as thyroxine (T4) and triiodothyronine (T3), that regulate metabolism, energy generation, and growth.