Current Federal Reserve policy focuses on interest rates, rather than

Current Federal Reserve policy focuses on interest rates, rather than on monetary aggregates, because ________.

A) monetary aggregates do not provide clear or consistent signals to guide policymakers
B) open market operations affect interest rates more directly than they affect monetary aggregates
C) according to the Fisher effect, the interest rate is a key determinant of the inflation rate
D) all of the above
E) none of the above

ANSWER

A