A variable that the Federal Reserve focuses on because it has a direct link to the variables the Fed is ultimately concerned about is known as a(n)
A)median target.
B)short-term target.
C)immediate target.
D)intermediate target.

Question

Quizplus · Accepted Answer

An intermediate target is a variable that the Federal Reserve focuses on because it has a direct link to the variables the Fed is ultimately concerned about, such as inflation, employment, and economic growth. Examples of intermediate targets include the federal funds rate and the money supply.

A Variable That the Federal Reserve Focuses on Because It