Using a monetary aggregate for an intermediate target
A)will cause the inflation rate to accelerate.
B)will cause interest rates to fluctuate.
C)requires the use of an interest rate as an operating target.
D)is required by the Federal Reserve Act.

Question

Quizplus · Accepted Answer

Using a monetary aggregate as an intermediate target can lead to fluctuations in interest rates as the central bank adjusts its policy to achieve the target.

Using a Monetary Aggregate for an Intermediate Target