One Problem with the Ripple Effect from the Fed's Monetary

question 60

Multiple Choice

One problem with the ripple effect from the Fed's monetary policy is

• A) the fact that the monetary policy transmission process is long and drawn out.
• B) that changing the Federal funds target rate seldom has an effect on the markets for reserves and loanable funds.
• C) the tight relationship between that the Federal funds rate has to aggregate spending.
• D) the frequent misalignment of the spread between the Federal funds rate and the Federal funds rate target.

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