The Fed's difficulties in producing greater monetary control after October 1979 were attributable to
A)fluctuations in the economy and in financial markets.
B)using free reserves as an operating target.
C)the agreement with the Treasury to peg interest rates.
D)using nonborrowed reserves as an operating target.

Question

Quizplus · Accepted Answer

The Fed faced challenges in controlling monetary policy due to economic and financial market fluctuations, which made it difficult to maintain stable monetary conditions.

The Fed's Difficulties in Producing Greater Monetary Control After October