In Recent Years,the Fed Has Chosen to Target Interest Rates

question 191

Multiple Choice

In recent years,the Fed has chosen to target interest rates rather than the money supply because

• A)Congress passed a law requiring them to do so.
• B)the President requested them to do so.
• C)the money supply is hard to measure with sufficient precision.
• D)changes in the interest rate change aggregate demand,but changes in the money supply do not.

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Definitions:

Third Variable

A variable that is not directly involved in the hypothesis being tested but can influence the relationship between the independent and dependent variables.

Action Potential

The neural impulse that travels along the axon and then causes the release of neurotransmitters into the synapse.

Neuron

A nerve cell that is the basic building block of the nervous system, responsible for transmitting information throughout the body.

Genetic Codes

The set of rules by which information encoded in genetic material (DNA or RNA sequences) is translated into proteins by living cells.