The Fed's goal of interest rate stability
A)was formally abandoned in 1998.
B)is motivated by political pressure as well as by a desire for a stable saving and investment environment.
C)is undermined by actions the Fed takes to further its goal of stability in financial markets and institutions.
D)is undermined by actions the Fed takes to further its goal of price stability.

Question

Quizplus · Accepted Answer

The Fed aims for interest rate stability to create a predictable environment for saving and investment, which is also influenced by political pressures.

The Fed's Goal of Interest Rate Stability