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:

Functional Analysis

An approach in behavior therapy to identify the antecedents and consequences of behaviors to understand and modify them.

Cause And Effect

A relationship where one event (the cause) makes another event happen (the effect), often explored in psychology to understand behavioral outcomes.

Cognitive Approaches

Psychological methods that focus on understanding how thought processes influence behavior and emotions.

Albert Ellis

An American psychologist who developed Rational Emotive Behavior Therapy (REBT), emphasizing the role of beliefs and attitudes in emotional disturbance.