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.

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Definitions:

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