In Its Current Execution of Monetary Policy,the Fed Does Not

question 25

Multiple Choice

In its current execution of monetary policy,the Fed does not usually have a specific _____________ target,but rather it tries to target a specific ________________.

• A) money supply; federal funds rate
• B) federal funds rate; money supply
• C) money supply; discount rate
• D) required reserves ratio; discount rate

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Definitions:

International Trade

The exchange of goods and services between countries, allowing for increased efficiency and market expansion.

Labor

The work and time for which employees are paid.

Resources

The total means available for economic and political development, such as minerals, labor, and capital.

Absolute Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower cost per unit than competitors.