The Federal Reserve can:
A. only set a money supply target that is consistent with a nominal interest rate target, and vice versa.
B. only target the nominal interest rate, not the money supply.
C. simultaneously set independent money supply and nominal interest rate targets.
D. only target the money supply, not the nominal interest rate.
Answer: A
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C
Which of the following shifts the supply curve of broccoli?
A) an increase in income B) a newly discovered increase in the nutritional value of broccoli C) a newly discovered link between broccoli consumption and tooth decay D) the destruction of much of this year's broccoli crop by hurricanes
Professor Weldon offers to pay his graduate students $20 an hour to grade essay papers. Six students accept the offer. When he raises the wage rate to $25, all ten of his students accept the offer. At least within the wage rate range $20 to $25, the students'
a. supply curve of labor is downward sloping b. demand curve for labor is downward sloping c. supply curve of labor is upward sloping d. demand curve for labor is downward sloping e. supply curve of labor is backward bending
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.