The Fed's power to influence aggregate demand is constrained by:
A) the President and Congress.
B) contracting fiscal policy.
C) uncertainty and an inability for everyone to fully understand the complexity of the economy.
D) the significant amount of U.S. dollars held in foreign reserves.

Question

Quizplus · Accepted Answer

The Fed's ability to influence aggregate demand is limited by the inherent uncertainty and complexity of the economy, which makes it difficult to predict the outcomes of monetary policy actions accurately.

The Fed's Power to Influence Aggregate Demand Is Constrained By