If the Fed's Strategy for Conducting Monetary Policy Is Thought

question 60

Multiple Choice

If the Fed's strategy for conducting monetary policy is thought of as a game plan that proceeds in stages,then the game plan can be summarized as follows:

• A) The Fed selects its policy goals, then the intermediate targets consistent with achieving its policy goals, then the operating targets consistent with its intermediate targets. Finally, it adjusts its policy tools to effect the desired targets and goals.
• B) The Fed selects its policy goals, then the operating targets consistent with achieving its policy goals, then the intermediate targets consistent with its operating targets. Finally, it adjusts its policy tools to effect the desired targets and goals.
• C) The Fed selects its policy goals, then the intermediate targets consistent with achieving its policy goals, then the policy tools consistent with its intermediate targets. Finally, it adjusts its operating targets to effect the desired targets and tools.
• D) The Fed selects its policy tools, then the operating targets consistent with achieving its policy tools, then the intermediate targets consistent with its operating targets. Finally, it adjusts its policy goals to effect the desired targets and tools.
• E) None of the above.

---

Definitions:

King Jehoiakim

was a monarch of the ancient Kingdom of Judah, noted in biblical history for his reign and actions leading to conflict with Babylon.

Plato

An ancient Greek philosopher who was a student of Socrates and the teacher of Aristotle, known for his work in philosophy, ethics, and epistemology.

Parallelism

The use of components in sentences that are grammatically the same or similar in construction, sound, meaning, or meter.

Westminster Dog Show

An annual conformation show in the United States for purebred dogs, considered one of the most prestigious dog shows in the world.