Which of the Following Is a Potential Operating Target for the Fed

question 71

Multiple Choice

Which of the following is a potential operating target for the Fed?

• A) Nonborrowed reserves
• B) The federal funds rate
• C) The monetary base
• D) All of the above

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Definitions:

Utility Maximization

An economic principle where consumers attempt to get the greatest satisfaction possible from their available resources.

Demand Schedule

A table of numbers showing the amounts of a good or service buyers are willing and able to purchase at various prices over a specified period of time.

Utility Maximization

Utility Maximization is the economic principle that individuals or firms seek to achieve the highest satisfaction or benefit from their resources.

Marginal Utility

The extra contentment or usefulness experienced by consuming one more unit of a good or service.