Which of the Following Statements About Monetary Policy Is True

question 61

Multiple Choice

Which of the following statements about monetary policy is true?

• A) Unlike fiscal policy, there is no delay between the Fed's enacting a policy and the policy's effects.
• B) The Fed's policies tend to take effect more quickly and with less political influence than fiscal policy.
• C) Monetary policy has an equal impact on short-term and long-term interest rates.
• D) The Fed controls most interest rates directly by telling banks and other financial institutions what interest rate they must charge for common loans.

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