The Fed prefers to change its interest rate target only rarely because
A) those targets affect productivity in the labor force
B) a fluctuating stock and bond market signals a recession
C) interest rates are greatly overrated as a measure of economic performance
D) it is so difficult to do so
E) the changes destabilize the financial markets
Correct Answer:
Verified
Q40: Which of the following is a reason
Q41: If the Fed responds to an increase
Q42: The AD curve shifts to the right
Q43: The Fed's objectives present it with a
Q44: If there is a sudden increase in
Q46: The prices of stocks and bonds move
A)
Q47: The Fed can determine how the money
Q48: Revisions in the interest rate target
A) occur
Q49: Newspaper reports about good news in the
Q50: Which of the following is the Fed's
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