Ordinarily, if the Fed chooses an interest rate as an intermediate target,
A)it is worried about inflation.
B)it is worried about unemployment.
C)it will choose a monetary aggregate as an operating target.
D)it will choose an interest rate as an operating target.

Question

Quizplus · Accepted Answer

If the Fed chooses an interest rate as an intermediate target, it will most likely choose an interest rate as an operating target to achieve the desired intermediate target. This is because changing the interest rate can affect various aspects of the economy, such as borrowing costs and investment decisions, which can ultimately impact inflation and unemployment levels.

Ordinarily, If the Fed Chooses an Interest Rate as an Intermediate