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:

Landrum-Griffin Act

A 1959 United States federal law that aims to protect union members' rights and improve labor union governance and accountability.

Labor Union

A labor union is a legally constituted group of individuals working together to achieve shared, job-related goals, including higher pay and shorter working hours.

Taft-Hartley Act

In 1947, the United States passed a federal legislation that curtails the functions and influence of labor unions.

Prison Labor

The employment of incarcerated individuals in various tasks, often for little or no pay, within or outside prison facilities.