The Reason Why Some Economists Believe That Attempts by the Fed

question 2

Multiple Choice

The reason why some economists believe that attempts by the Fed to surprise the public in a systematic way cannot be successful is that

• A)information about the Fed's plans will inevitably be leaked to the public.
• B)the Fed announces its goals before Congress and publishes its policy actions in the Federal Reserve Bulletin six weeks after they take place.
• C)the public would eventually figure out what the Fed's policies were, negating the Fed's surprise.
• D)competition in the money markets would neutralize the Fed's intervention.

---

Definitions:

Upward Communication

The flow of information from lower levels of a hierarchy to higher levels.

Downward Communication

Information flow from the higher levels of a hierarchy to the lower levels, typically used for instructions, performance feedback, and policy announcements.

Organizational Goals

The objectives or targets that an organization aims to achieve, which guide its operations and strategy.

Informal Networks

Informal networks refer to the social connections and channels of communication within an organization that are not officially designated or structured but play a crucial role in information flow and collaboration.