Fed Policy Procedures: Historical Perspective
1) 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.
2) Although the Fed professed employment of ________ targeting during the 1970s, its behavior suggests that it emphasized ________ targeting.
A) free reserve; interest rate
B) interest rate; monetary aggregate
C) monetary aggregate; interest rate
D) free reserve; monetary aggregate
3) The Fed”s use of the federal funds rate as an operating target in the 1970s resulted in
A) countercyclical monetary policy.
B) too slow growth in M1 throughout the decade.
C) procyclical monetary policy.
D) too rapid growth in M1 throughout the decade.