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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.

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