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Tidy Tidy
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8 years ago
The Federal Reserve does not target both the money supply and an interest rate because
A) it would be too confusing to Wall Street and would disrupt the financial markets.
B) it would be too easy for Wall Street to determine what policy the Fed is following and this would destabilize the economy.
C) it would be illegal according to the Federal Reserve Act.
D) the Fed cannot achieve a target for both the money supply and an interest rate at the same time.
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
Authors:
Read 204 times
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Repeat after me: 'Calm down. Things are gonna be fine. Things are gonna be all great. Just relax.' Wink Face
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SydnieSydnie
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8 years ago
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#2
8 years ago
I was confident with my answer, glad it was correct.

Oh, and thumbs-up are more than welcome Slight Smile
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