Every Six Weeks,the Federal Open Market Committee (FOMC)meets to Discuss

Multiple Choice

Every six weeks,the Federal Open Market Committee (FOMC) meets to discuss how to best adjust ________ to accommodate shocks that shift the level of ________.

A) the equilibrium real interest rate;the target Fed Funds rate
B) the target Fed Funds rate;the equilibrium real interest rate
C) the 3 month T-bill rate;the inflation gap
D) target rate of inflation;money demand
E) none of the above