Which of the Following Is a Problem Associated with Monetary

question 10

Multiple Choice

Which of the following is a problem associated with monetary policy?

• A)The Fed cannot control deposit expansion at member banks.
• B)The Fed is not able to predict the impact of its monetary policies on the loans issued by member banks.
• C)The Fed is not able to predict the impact of its policies on the loans issued by global banks.
• D)Monetary policies are subject to excessive implementation lags.
• E)Monetary policies are subject to several governmental regulations.

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Definitions:

Sleeper Effect

A phenomenon where a message that initially has little impact becomes more persuasive over time, typically because of a delay in the message's perceived importance or credibility.

Psychological Reactance

An enthusiastic reaction towards proposals, persons, directives, or laws that intimidate or eradicate specified freedoms of behavior.

Sensory Overload

A condition where one experiences discomfort or incapacity to process the volume or intensity of incoming sensory information.

Yielding

Giving way under pressure or agreeing to the demands or opinions of others.