In October 1982, the Fed
A)began to pay more attention to the federal funds rate.
B)stated that nonborrowed reserves would be the operating target.
C)tightened its control over money growth.
D)began to pay more attention to the growth in monetary aggregates.

Question

Quizplus · Accepted Answer

In October 1982, the Federal Reserve shifted its focus towards the federal funds rate as its primary monetary policy instrument, moving away from targeting monetary aggregates. This change marked a significant shift in the Fed's approach to managing the economy.