In the 1970s, the Fed selected an interest rate as an operating target rather than a reserve aggregate primarily because it

In the 1970s, the Fed selected an interest rate as an operating target rather than a reserve aggregate primarily because it

In the 1970s, the Fed selected an interest rate as an operating target rather than a reserve aggregate primarily because it




A) had no interest in targeting a monetary aggregate, as evidenced by its unwillingness to target a reserve aggregate.
B) was still very concerned with achieving interest rate stability.
C) was committed to targeting free reserves.
D) was committed to the real bills doctrine.




Answer: B