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The Decisions Made by the Federal Reserve Bank Sometimes Result

Question 165

Multiple Choice

The decisions made by the Federal Reserve Bank sometimes result in negative effects on the economy because:


A) the economy is weakened when the Fed uses monetary policy.
B) the government uses money inefficiently when it comes to fiscal policy.
C) the Fed finds that forecasting economic conditions is easy but controlling the money supply is difficult.
D) too much money or too little money might induce inflation or unemployment due to bad timing of decisions.

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