Which Statement Explains Why the Federal Reserve Has a Tough

question 90

Multiple Choice

Which statement explains why the Federal Reserve has a tough job?

• A) There are lags in the effects of monetary policy, and economic conditions continuously change.
• B) Legally they are not allowed to change the supply of money, they can only make recommendations to the President.
• C) It takes a long time for Congress to agree on a policy.
• D) They can change the supply of money but that doesn't affect spending or the rate of unemployment.

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Definitions:

Influenza

An extremely infectious virus that targets the respiratory tract, widely referred to as influenza.

Allergy

An immune system response to a foreign substance that's not typically harmful to the body.

Chronic Obstructive Pulmonary Disease

A group of lung diseases that block airflow and make it difficult to breathe, including emphysema and chronic bronchitis.

Circulatory

Related to the circulatory system, which involves the heart and blood vessels, responsible for transporting nutrients, gases, and waste products throughout the body.