The Fed's Control of the Money Supply Is Not Precise

question 36

Multiple Choice

The Fed's control of the money supply is not precise because

• A)Congress can also make changes to the money supply.
• B)there are not always government bonds available for purchase when the Fed wants to perform open-market operations.
• C)the Fed does not know where all U.S.currency is located.
• D)the amount of money in the economy depends in part on the behavior of depositors and bankers.

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