Even if the Fed could completely control the money supply, monetary policy would have critics because
A) the Fed is asked to achieve many goals, some of which are incompatible with others.
B) the Fed's goals do not include high employment, making labor unions a critic of the Fed.
C) the Fed's primary goal is exchange rate stability, causing it to ignore domestic economic conditions.
D) it is required to keep Treasury security prices high.
A
You might also like to view...
Refer to Figure 2-10. If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
A) 46 thousand forks B) 60 thousand spoons C) 16 thousand spoons D) 12 thousand forks
The concepts of specialization and gains from trade can be applied to:
A. international trade. B. why globalization has expanded recently. C. consumer decisions. D. household decisions.
According to utility theory, when total utility reaches a maximum, then marginal utility is:
A. Increasing B. Decreasing C. At a minimum D. Equal to zero
Which of the following would cause the money demand curve to shift to the left?
A) an open market purchase of Treasury securities by the Federal Reserve B) an increase in the interest rate C) an increase in the price level D) a decrease in real GDP