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san4es73 [151]
3 years ago
15

The federal reserve's target rate for the federal funds rate is an extra policy tool for the central bank, in addition to and in

dependent of the money supply. commits the fed to set a particular money supply so that it hits the announced target. is a goal that is rarely achieved because the fed can determine only the money supply. matters to banks that borrow and lend federal funds but does not influence aggregate demand.
Business
1 answer:
blondinia [14]3 years ago
8 0

Answer:

Commits the fed to set a particular money supply so that it hits the announced target

Explanation:

The target rate and money supply need to be alligned for the FED to achieve its goals.

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