1) If the desired intermediate target is a monetary aggregate, then the preferred policy instrument will be a(n) ________ variable like the ________.
A) interest rate; three month T bill rate
B) interest rate; federal funds rate
C) reserve aggregate; monetary base
D) reserve aggregate; narrow money supply M1
2) If the desired intermediate target is a monetary aggregate, which of the following would be the most preferred policy instrument?
A) The federal funds rate
B) The 90 day T bill rate
C) The 180 day T bill rate
D) The monetary base
3) If the desired intermediate target is an interest rate, the preferred policy instrument would be
A) the federal funds rate.
B) the monetary base.
C) nonborrowed reserves.
D) borrowed reserves.
E) the discount rate.