The Fed has attempted to solve the problems of being unable to directly control the variables that determine economic performance and the timing lags in observing and reacting to economic fluctuations by
A)pressing Congress for legislation which would expand its powers.
B)using targets to meet its goals.
C)abandoning some goals in order to achieve others.
D)devising new monetary policy tools.

Question

Quizplus · Accepted Answer

The Fed uses targets, such as inflation targeting or targeting certain interest rates, as a strategy to meet its goals. This approach helps in guiding economic expectations and making monetary policy more effective, despite the challenges of direct control and timing lags.

The Fed Has Attempted to Solve the Problems of Being