Any target value of the nominal interest rate chosen by the Federal Reserve implies a specific value for:
A)potential output.
B)the money supply.
C)government purchases.
D)the budget deficit.

Question

Quizplus · Accepted Answer

When the Federal Reserve chooses a nominal interest rate target, that particular interest rate interacts with money demand to imply the money supply.

Any Target Value of the Nominal Interest Rate Chosen by the Federal