If there is a "long and variable time lag" between when a change in monetary policy is instituted and when it impacts aggregate demand and output, this will
a. make it easier for the Fed to properly time changes in monetary policy.
b. make it more difficult for the Fed to properly time changes in monetary policy.
c. not affect the Fed's ability to time monetary policy changes correctly.
d. make it easier for the Fed to control inflation and achieve price stability.
B
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As of October 2012, which of the following was true?
A) deposits of foreign governments and international organizations > bank reserves > currency in circulation B) currency in circulation > bank reserves > deposits of foreign governments and international organizations C) bank reserves > currency in circulation > deposits of foreign government and international organizations D) currency in circulation > deposits of foreign governments and international organizations > bank reserves
The individual countries of the Eurozone are on which side of the "policy trilemma"?
A) free capital mobility and independent monetary policy B) free capital mobility and fixed exchange rate C) fixed exchange rate and independent monetary policy D) fixed exchange rate and capital controls