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Answer :
Final answer:
Intermediate targets are macroeconomic variables that the Fed can influence that are related to the Fed's goals.
Explanation:
Intermediate targets are macroeconomic variables that the Fed can influence that are related to the Fed's goals.
For example, one intermediate target of the Federal Reserve might be the inflation rate. The Fed can try to influence inflation through its policies, such as adjusting interest rates.
Intermediate targets are different from instruments and tools, which are the specific methods or mechanisms the Fed uses to influence these macroeconomic variables.
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