IF THE CENTRAL BANK’S STRATEGY FOR CONDUCTING MONETARY POLICY IS T...

24) If the central bank’s strategy for conducting monetary policy is thought of as a game plan that proceeds in stages, then the game plan can be summarized as follows: (a) The central bank selects its policy goals, then the intermediate targets consistent with achieving its policy goals, then the operating targets consistent with its intermediate targets; finally, it adjusts its policy tools to affect the desired targets and goals. (b) The central bank selects its policy goals, then the operating targets consistent with achieving its policy goals, then the intermediate targets consistent with its operating targets; finally, it adjusts its policy tools to affect the desired targets and goals. (c) The central bank selects its policy tools, then its intermediate targets consistent with its policy tools, then the operating targets consistent with the intermediate targets; finally, it adjusts its policy goals to affect the desired targets and tools. (d) The central bank selects its policy tools, then the operating targets consistent with achieving its policy tools, then the intermediate targets consistent with its operating targets; finally, it adjusts its policy goals to affect the desired targets and tools. (e) None of the above. Answer: A Question Status: Revised