Question

The Fed's eclecticism reflects

A.Changes in the targets the Fed sets for adjusting monetary policy.
B.Fixed rules that are set for monetary growth rates.
C. Guidance from Congress.
D. The targeting of interest rates as the only goal to be achieved by monetary policy.

Answer 1

The correct answer for the question that is being presented above is this one: "A.Changes in the targets the Fed sets for adjusting monetary policy." Instead of fixed rules for money-supply growth, the Fed's eclectic combination of flexible rules and limited discretion targets money-supply growth.