Which of the Following Is Not a Disadvantage of Of the Fed's

question 60

Multiple Choice

Which of the following is not a disadvantage of of the Fed's "just do it" approach to monetary policy?

• A)There is low transparency of policy.
• B)There is low accountability for central bankers.
• C)This type of policy make the Fed more susceptible to the time-inconsistency problem.
• D)It relies on a stable money-inflation relationship.

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Definitions:

Forecasted Cost

An estimate of the expenses that will be incurred on a project or by a company in a future period.

Average Cost

The total cost of goods available for sale divided by the total number of units available for sale, determining an inventory valuation.

Sensitivity

The degree to which the value of an investment or financial metric responds to changes in market conditions or other variables.

Net Present Value

A calculation used to determine the current value of a series of future cash flows by discounting them at a specific rate.