All the following affect short-run operating targets of the FOMC, except:
A)the federal funds rate.
B)the rate of inflation.
C)the budget deficit.
D)the foreign exchange rate.
E)the growth of real GDP.

Question

Quizplus · Accepted Answer

The budget deficit may have long-term implications for the economy, but does not directly affect the short-run operating targets of the FOMC. The other options listed directly impact the short-run operating targets, such as the federal funds rate, inflation, foreign exchange rate, and growth of real GDP.

All the Following Affect Short-Run Operating Targets of the FOMC