If the Fed followed through on plans to be more open to and more quickly provide the public with information about monetary policy,then we would expect to see
A)the impact of the money supply on output would get stronger.
B)the Fed would not have any power over output in the future.
C)the impact of the money supply on output would get weaker.
D)information does not affect output.

Question

Quizplus · Accepted Answer

If the Fed provides more information about monetary policy, it would lead to greater transparency and less uncertainty, which could potentially weaken the impact of the money supply on output. This is because markets and consumers would be able to better anticipate and adjust to changes in monetary policy, reducing the shock of changes in the money supply. However, it is important to note that this is just a potential effect and other factors could come into play as well.

If the Fed Followed Through on Plans to Be More