The advocates of discretion for the Fed's role think that the Fed's adjustments on average push the economy in the:
A) wrong direction and lower GDP volatility.
B) right direction and lower GDP volatility.
C) wrong direction and increase GDP volatility.
D) right direction and increase GDP volatility.

Question

Quizplus · Accepted Answer

Advocates of discretion for the Fed's role believe that the Fed's adjustments on average push the economy in the right direction and lower GDP volatility. This means that the Fed's actions have a positive impact on the economy and help stabilize it, leading to lower fluctuations in GDP.

The Advocates of Discretion for the Fed's Role Think That