The Fed Cannot Predict the Effects of Open-Market Operations with Perfect

question 203

Multiple Choice

The Fed cannot predict the effects of open-market operations with perfect accuracy because of

• A)changes in people's desires for cash.
• B)foreigners desire to hold U.S.dollars.
• C)banks' desires to hold excess reserves.
• D)all of the above are correct.

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Definitions:

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The influential factors derived from societal norms, values, practices, and beliefs that shape human behavior and attitudes.

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