Compared to the past, FOMC meetings are now much more transparent. How might this transparency impact the effectiveness of monetary policy actions?
A) The transparency helps make the Fed's actions more credible and should help make policy actions more effective.
B) The transparency undermines the effectiveness since financial markets can more quickly adjust their behavior to fight the policy actions.
C) The transparency counteracts the secrecy in which fiscal policy is enacted, and therefore decreases its effectiveness.
D) The transparency lengthens policy lags, so monetary policy takes longer to implement and take effect.
A
You might also like to view...
In economic terminology, an inferior good is a good
A) that no one will purchase. B) that doesn't work properly. C) that has no monetary value. D) for which demand increases as income decreases.
A common fallacy that is used to oppose trade is the idea that
A. the only gains from trade go to the rich, so the poor must lose. B. “you get what you pay for.” C. “if it’s not broken, don’t fix it.” D. one country’s gain must be another’s loss. E. what is true for one is true for all.