Monetarists Think That the Fed Should Use ________ as a Target

question 70

Multiple Choice

Monetarists think that the Fed should use ________ as a target when conducting monetary policy.

• A)the money supply
• B)the federal funds rate
• C)the Treasury bill rate
• D)the inflation rate
• E)the unemployment rate

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Definitions:

Wool Production

The process of breeding, raising, and shearing sheep to obtain wool, a natural fiber used in textiles.

Elasticity Of Demand

An indicator of the degree to which demand for a product is affected by variations in its price, reflecting the responsiveness of the quantity demanded to price fluctuations.

Cigarettes

Narrow cylinders of finely cut tobacco rolled in paper for smoking, often containing a filter at one end.

Tax

A mandatory monetary fee or different kind of tax levied on individuals by a state entity with the purpose of raising funds for government operations and public projects.