The Fed's monetary target shifted in the late 1980s and 1990s when the
a. Fed's focus shifted from the interest rate to the money supply to counter persistent high inflation
b. Fed used its discretion to make the money supply conform to a targeted interest rate
c. Fed realized that higher interest rates could not stimulate investment, aggregate demand, and real GDP
d. Fed became less concerned about inflation and worried more about recession
e. Fed abandoned its no-new-taxes pledge
D
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Which of the following is the best example of money?
A) share of Intel stock B) checkable deposit C) credit card D) phone card E) gold
The people of the Island of Yap used stones as a general medium of exchange. Therefore,
A) their economic system was based upon barter. B) their stones served as money. C) they had no price system, because prices can't be measured with stones. D) inflation was impossible.