Macroeconomic variables that the Fed cannot control directly but can influence fairly predictably,and which are related to the Fed's goals,are known as
A)instruments.
B)tools.
C)intermediate targets.
D)initial targets.

Question

Quizplus · Accepted Answer

Intermediate targets are macroeconomic variables that can be influenced by the Fed but cannot be controlled directly. These targets are used to guide policymakers towards achieving their goals, such as low inflation and low unemployment. Examples of intermediate targets include the federal funds rate, money supply, and long-term interest rates. Instruments refer to the tools the Fed uses to affect these targets, while tools are the specific policies or strategies used by the Fed to influence the economy. Initial targets are not a recognized term in macroeconomics.

Macroeconomic Variables That the Fed Cannot Control Directly but Can