the fluctuations in both money supply growth and the federal funds rate during 1979 639738

1) The fluctuations in both money supply growth and the federal funds rate during 1979 1982 suggest that the Fed

A) had shifted to borrowed reserves as an operating target.

B) had shifted to total reserves as an operating target.

C) had shifted to the monetary base as an operating target.

D) never intended to target monetary aggregates.

Fed Policy Procedures: Historical Perspective

2) The Fed can engage in preemptive strikes against a rise in inflation by ________ the federal funds interest rate; it can act preemptively against negative demand shocks by ________ the federal funds interest rate.

A) raising; lowering

B) raising; raising

C) lowering; lowering

D) lowering; raising