In General,the Fed Has Not Embraced a Fixed-Growth-Rate Monetary Policy

question 86

Multiple Choice

In general,the Fed has not embraced a fixed-growth-rate monetary policy because:

• A)its adoption would lead to a decrease in the employment rate in the U.S.economy.
• B)no influential economists have come out in favor of it.
• C)the Fed has to report to Congress,and Congress is not in favor of it.
• D)the Fed prefers active fiscal policy.
• E)they believe the economy is too complex to make such a policy work consistently.

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