Classify each of the following as either a policy instru- ment or an intermediary target. Explain your answer. a. Long-term interest rates b. Central bank interest rates c. M2 d. Reserve requirements

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Money And The Banking System
Section: Chapter Questions
Problem 12CQ
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Classify each of the following as either a policy instru- ment or an intermediary target. Explain your answer.

a. Long-term interest rates
b. Central bank interest rates

c. M2
d. Reserve requirements

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