The Fed has ignored advice to use a broad variable such as the stock of nonfinancial credit or nominal GDP as an intermediate target because
A)such broad targets are not allowable under the provisions of the Federal Reserve Act.
B)such broad targets are not easily measurable.
C)such broad targets are not easily controllable.
D)of congressional pressure to use M1 as the intermediate target.

Question

Quizplus · Accepted Answer

Such broad targets are not easily controllable by the Federal Reserve, making them impractical for use as intermediate targets in monetary policy.

The Fed Has Ignored Advice to Use a Broad Variable