Why Will It Difficult for the Fed to Use Monetary

question 141

Multiple Choice

Why will it difficult for the Fed to use monetary policy to direct the economy back to full employment and price stability from the recession of 2008-2009?

• A) The Fed does not have the tools needed to alter the supply of money.
• B) Monetary policy is unable to alter short-term interest rates.
• C) The time lags between changes in monetary policy and when the changes exert an impact on output and prices are long and variable.
• D) It takes the Fed a long time to change the direction of monetary policy.

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Definitions:

Abdominopelvic Cavity

The combined cavity within the abdominal and pelvic area that houses the majority of the organs of the digestive, excretory, and reproductive systems.

Directional Terms

Terms used to describe the locations of structures or movements of the body in relation to other structures or locations.

Lateral

Relating to, situated at, or extending toward the side; away from the midline of the body.

Parietal Peritoneum

The part of the peritoneum that lines the abdominal and pelvic walls, as opposed to the visceral peritoneum which covers internal organs.