Which of the Following Makes It More Difficult for Monetary

question 101

Multiple Choice

Which of the following makes it more difficult for monetary policy makers to time policy changes correctly?

• A) Monetary policy makers cannot act without congressional approval.
• B) The primary effects of the policy change will not be felt for 6 to 15 months into the future.
• C) The Board of Governors of the Federal Reserve System does not meet very often.
• D) Monetary policy affects only the general level of prices; it exerts no impact on real variables such as output and employment.

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Definitions:

Liability

Legal responsibility for one's actions or the obligation to make restitution for loss or damage.

Client

A person or organization receiving services or advice from a professional or company.

Liability for Negligence

The legal responsibility for harm caused by failing to act as a reasonable person would under similar circumstances.

Third Party Beneficiaries

Individuals or entities who are not parties to a contract but stand to benefit from its execution or its terms.