Intermediate targets are
A)identical to instruments.
B)macroeconomic variables that the Fed can influence that are related to the Fed's goals.
C)also known as the Fed's tools.
D)macroeconomic variables that never get revised.

Question

Quizplus · Accepted Answer

Intermediate targets are macroeconomic variables that the Fed can influence that are related to the Fed's goals. While instruments refer to the specific policy tools the Fed uses to achieve those targets, intermediate targets serve as guides for the Fed's policy decisions.

Intermediate Targets Are