Which of the following statements is true concerning the Fed's ability to measure potential intermediate targets over a short period of time?
A)The Fed can perfectly measure the relevant interest rates, but cannot perfectly measure the relevant monetary aggregates.
B)The Fed can perfectly measure the relevant monetary aggregates, but cannot perfectly measure the relevant interest rates.
C)The Fed can perfectly measure both the relevant monetary aggregates and the relevant interest rates.
D)The Fed cannot perfectly measure either the relevant monetary aggregates or the relevant interest rates.

Question

Quizplus · Accepted Answer

The Federal Reserve (Fed) faces challenges in perfectly measuring both relevant monetary aggregates and interest rates due to the complexity of the financial system and the lag with which data becomes available. This makes it difficult to have precise, real-time measures of these economic indicators.

Which of the Following Statements Is True Concerning the Fed's