Why Are Many Economists Skeptical of the Fed's Ability to Fine

question 95

Multiple Choice

Why are many economists skeptical of the Fed's ability to fine tune the economy?

• A) Monetary policy only affects output in the long run.
• B) Lags in policy make it difficult to properly time policy.
• C) Fiscal policy can be implemented more quickly than monetary policy.
• D) Monetary policy does not have any effect on output.

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Definitions:

Redundant Electrical Path

An additional pathway in an electrical circuit designed to ensure continuous operation even if one path fails.

Holding Contacts

Electrical contacts in a relay or switch that maintain their state until altered by a specific action, used to hold circuits closed or open.

Energized

Describes an electrical component that is supplied with power and is capable of performing its function or operation.

Normally Open

A configuration in electrical contacts indicating the default state is non-conductive, closing to complete a circuit when activated.