In General,the Fed Has Not Embraced a Fixed-Growth-Rate Monetary Policy

question 123

Multiple Choice

In general,the Fed has not embraced a fixed-growth-rate monetary policy because

• A)its adoption would cost them their jobs
• B)no influential economists have yet come out in favor of it
• C)the Fed has to answer to Congress,and Congress is not in favor of it
• D)the Fed prefers active fiscal policy
• E)they believe the economy is too complex and too changeable to make such a policy work consistently