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

question 58

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:

Mammalia

A class of warm-blooded vertebrate animals characterized by the presence of mammary glands, which females use to feed their young.

Class

A rank or category in biological taxonomy, falling between phylum and order, used to classify organisms with shared characteristics.

Phyla

The plural of phylum, a rank in the biological classification system that is below kingdom and above class, used to group organisms based on their basic body plan.

Amniotic Egg

Egg that contains an amnion and other membranes that surround and protect the developing embryo and keep it moist; the evolution of the amniotic egg was one of the adaptations that allowed animals to become completely terrestrial.