Question

What is the relationship between tools, operating targets, intermediate targets, and ultimate targets? The of monetary policy are those things over which the Fed has direct control such as open market operations. These have a direct effect on such as the Fed funds rate. These in turn will affect such as consumer confidence. It is these that then impact the Fed’s , which are prices, growth, and employment. Because the Fed cannot directly control its , the Fed must rely on adjusting its to try to achieve its .

Answer 1

Answer:

The tools of monetary policy are the Items which the Fed has a direct power, grip and control control like the -- open market operations. These tools directly effect operating targets like -- the Fed funds rate. These operating , in turn affects intervening targets like the --consumer confidence. These intermediate targets then impact the Fed's ultimate targets, like the:prices, growth, and employment. Because the Fed do not have direct control on its ultimate targets, the Fed must have to bank and depend on adjusting its tools to try to achieve its ultimate targets