1. The Fed's job in manipulating monetary policy is made harder by the fact that: A) monetary authorities do not have a good understanding of how monetary policy works. B) monetary policy is usually pulling the economy in the opposite direction from fiscal policy. C) the Fed has to operate in real time and information on recessions usually becomes available with a lag. D) monetary policy is hardly ever effective in influencing business fluctuations. E) the Treasury Department cannot accommodate every demand placed on it by the Fed. 2. Monetary policy will be less effective at offsetting A) drops in velocity B) decreasing dynamic aggregate demand C) negative supply side shocks D) increases in consumer confidence
1. The Fed's job in manipulating
A) monetary authorities do not have a good understanding of how monetary policy works.
B) monetary policy is usually pulling the economy in the opposite direction from fiscal policy.
C) the Fed has to operate in real time and information on recessions usually becomes available with a lag.
D) monetary policy is hardly ever effective in influencing business fluctuations.
E) the Treasury Department cannot accommodate every demand placed on it by the Fed.
2. Monetary policy will be less effective at offsetting
A) drops in velocity
B) decreasing dynamic aggregate demand
C) negative supply side shocks
D) increases in consumer confidence
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