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Difficulties for the Fed in Conducting Successful Monetary Policy Arise

Question 39

Multiple Choice

Difficulties for the Fed in conducting successful monetary policy arise from the fact that


A) the Fed has no good control over the primary credit rate (the discount rate)
B) the Fed often has to follow orders from the Treasury department
C) changes in some of the variables that are important to monetary policy (e.g., velocity) cannot always be accurately anticipated
D) FOMC has to vote on policy changes before they are implemented
E) both C and D

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