In Gauging the Stance of Monetary Policy, Which of the Following

question 41

Multiple Choice

In gauging the stance of monetary policy, which of the following is true?

• A)The Fed relies on forecasts more than incoming data because forecasts are highly reliable and incoming data may have random fluctuations.
• B)The Fed relies more on incoming data than forecasts because forecasts are often wide of the mark.
• C)Increasing globalization makes monetary policy easier to implement.
• D)Trends in incoming data can be picked up very quickly, usually in one month or less.

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