From 1979 to 1982, the Fed Targeted Bank Reserves as the Monetary

question 56

Multiple Choice

From 1979 to 1982, the Fed targeted bank reserves as the monetary policy tool.One side effect of this strategy was:

• A)The inflation rate increased to over 18 percent in 1983
• B)Many banks failed that otherwise may not have
• C)Interest rates rose very high
• D)Inflation remained high for most of the 1980's

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Definitions:

Negative Slope

Describes a line or curve on a graph that decreases in value as it moves from left to right.

Panels

Groups of individuals selected to review or discuss specific topics, or a series of flat boards forming part of a structure or piece of furniture.

Negative Slope

Characteristic of a line or curve on a graph that shows a decrease in the value of one variable when another variable increases.

Positive Slope

In graphing terms, indicates an increase in the y-variable for an increase in the x-variable, typically reflecting a direct relationship between two variables.