In the Period of 1979 to 1982, If the Fed

question 78

Multiple Choice

In the period of 1979 to 1982, if the Fed had set an interest rate target that was equal to the actual market interest rates that occurred, the:

• A)Economy would have been better off
• B)Target would not have been politically acceptable
• C)Target would have been a federal funds rate of zero percent
• D)Inflation rate would have risen further

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