Policymakers Are Often Reluctant to Turn to Unconventional Monetary Policy

question 22

Multiple Choice

Policymakers are often reluctant to turn to unconventional monetary policy measures because:

• A) they are uncertain of the quantitative impact of using them.
• B) such policies are potentially too powerful.
• C) such policies require Congressional approval and Congress is often slow to act.
• D) such policies require coordination with the central bankers of foreign countries.

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Definitions:

Right Little Finger

The smallest finger on the right hand, important for hand function and grip stabilization.

Forearm Level

Relating to or situated in the part of the arm between the elbow and the wrist.

Trunk Muscle

Refers to the muscles of the central part of the body, encompassing both the abdominal and the back muscles.

Subclavius

A small muscle located under the clavicle, playing a role in shoulder movements and stability.