In October 1979 the Fed announced that it would focus on
A)stabilizing interest rates
B)specified targets for slowly falling interest rates
C)specified targets for the long-run equilibrium price level
D)specified targets for growth of the money supply
E)stabilizing the long-run equilibrium price level

Question

Quizplus · Accepted Answer

In October 1979, the Fed announced its adoption of a new operating technique that focused on achieving specified targets for the growth of the money supply. This approach was known as monetarism or monetary targeting, and it aimed to stabilize the economy by controlling the growth of the money supply. Thus, choice D is the best answer.

In October 1979 the Fed Announced That It Would Focus