Which Statement Explains Why the Federal Reserve Has a Tough

question 90

Multiple Choice

Which statement explains why the Federal Reserve has a tough job?

• A) There are lags in the effects of monetary policy, and economic conditions continuously change.
• B) Legally they are not allowed to change the supply of money, they can only make recommendations to the President.
• C) It takes a long time for Congress to agree on a policy.
• D) They can change the supply of money but that doesn't affect spending or the rate of unemployment.

---

Definitions:

Group Development

A process through which a team evolves over time, typically moving through stages of forming, storming, norming, performing, and adjourning.

Relationship Conflict

Involves personal disagreements and emotional tension between individuals, often detracting from team cohesion.

Equality Method

An approach in decision-making or resource distribution where all individuals are treated equally, with the same amount of resources or opportunities shared among them.

Equity Method

An accounting technique used to assess the profits earned by investments in other companies, reflecting the share of earnings proportional to ownership.