Over time, the Fed has used ____ in the late 1950s to mid-1970s, then ____ then ____ as its intermediate target.
A) M1 growth rate; M2 growth rate; none
B) No money growth target; M1 growth rate; M2 growth rate
C) M2 growth rate; M1 growth rate; none
D) No money growth target; M2 growth rate; M1 growth rate
E) federal funds rate; M1 growth rate; M2 growth rate

Question

Quizplus · Accepted Answer

The Fed initially used the M1 growth rate as its intermediate target in the late 1950s to mid-1970s, then shifted to the M2 growth rate, and eventually moved away from using any specific money growth target.

Over Time, the Fed Has Used ____ in the Late