All of the following impact the effectiveness of Fed policy except
A)Global sources of money.
B)The time lag between when interest rates change and when investment changes.
C)Trade Unions.
D)Expectations about the economy in the future.

Question

Quizplus · Accepted Answer

The impact of trade unions is not directly related to the effectiveness of Fed policy. The other options listed can all affect the effectiveness of Fed policy, such as global sources of money influencing currency exchange rates and expectations about the economy impacting consumer and business spending. The time lag between interest rate changes and investment changes can also make it difficult for the Fed to control economic activity.

All of the Following Impact the Effectiveness of Fed Policy