One of the Difficulties the Fed Experiences When Implementing Monetary

question 43

Multiple Choice

One of the difficulties the Fed experiences when implementing monetary policy is:

• A) frequent shifts in the economy, which make it difficult to choose between expansionary and contractionary policy.
• B) the time it takes for monetary policy to affect the economy once enacted.
• C) avoiding political interference from Congress.
• D) deciding whether to use open market operations, the discount window, or reserve requirements to adjust the money supply.

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