Which of these is NOT one of the issues that makes it difficult for the Fed to choose the right course of action at the right time?
A. The Fed's incomplete and imperfect control of the money supply
B. The quality of the data the Fed uses
C. The time that it takes for the Fed to decide on a course of action
D. The time it takes for Fed action to have an impact
Ans: C. The time that it takes for the Fed to decide on a course of action
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From before the financial crisis began in September of 2007 to when the crisis was over at the end of 2009, amount of Federal Reserve assets rose, leading to
A) a huge increase in the monetary base. B) a huge expansion of the money supply. C) an economic expansion. D) a high inflation.
If the money supply increases this will cause the interest rate to rise, investment to fall and GDP to fall
a. True b. False Indicate whether the statement is true or false