Which of the Following Is True with Regard to the Use

question 19

Multiple Choice

Which of the following is true with regard to the use of monetary policy to combat a recession?

• A)The Fed's monetary policy has been expansionary in response to the 2008-2009 recession,despite the poor results from Japan's expansionary monetary policy during the 1990s.
• B)Monetary policy lags are relatively short and predictable,so the results of expansionary monetary policy should be quickly evident.
• C)Frequent monetary policy changes will promote economic stability,so the Fed must constantly alter its policy to correspond with changing economic conditions.
• D)If monetary policy makers turn toward restriction too quickly or stay with the expansionary policy too long,it can throw the economy back into recession or generate future inflation.