Although the Fed professed employment of a monetary aggregate targeting strategy during the 1970s,its behavior suggests that it emphasized
A)free-reserve targeting.
B)interest-rate targeting.
C)a real-bills doctrine.
D)price-index targeting.

Question

Quizplus · Accepted Answer

The behavior of the Fed during the 1970s suggests that it emphasized interest-rate targeting rather than monetary aggregate targeting, as evidenced by its use of open market operations to control short-term interest rates.

Although the Fed Professed Employment of a Monetary Aggregate Targeting