Difficulties for the Fed in Conducting Successful Monetary Policy Arise

question 25

Multiple Choice

Difficulties for the Fed in conducting successful monetary policy arise from the fact that

• A)the Fed has no good control over the primary credit rate (the discount rate)
• B)the Fed often has to follow orders from the Treasury department
• C)changes in some of the variables that are important to monetary policy (e.g., velocity) cannot always be accurately anticipated
• D)FOMC has to vote on policy changes before they are implemented
• E)both C and D