Which of the Following Statements Is (Are)correct? the Federal Reserve

question 57

Multiple Choice

Which of the following statements is (are) correct? The Federal Reserve

• A)can,over the long run,roughly control the money supply by changing the monetary base to offset any undesirable changes in the money stock as a result of changes in currency holdings or excess reserve holdings.
• B)controls the money supply better in the long-run because of short-run uncertainty regarding the money multiplier.
• C)is in absolute control of the money stock at all times.
• D)Both a and b

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Definitions:

Specific Instructions

Detailed directions or orders issued for performing a particular task or operation.

Unenforceable

Refers to a contract or clause that, due to legal reasons, cannot be executed or enforced by law.

FOB

Free on Board; a contractual term indicating that the seller assumes responsibility for the goods until they are loaded onto a transport vessel.

Risk of Loss

The responsibility for damage or destruction to goods, typically determining who bears the cost when property is damaged during a transaction or transportation.