Which of the following is a problem in pursuing monetary policy?
A)The Fed must reveal to the public anytime the Fed changes its policy.
B)Monetary policy must be approved by the Congress.
C)The Fed cannot control the federal funds rate.
D)The lag between a change in the quantity of money and its effect on economic activity may be long.
E)None of the above answers is correct.

Question

Quizplus · Accepted Answer

The lag between a change in the quantity of money and its effect on economic activity can be long, making it difficult to time monetary policy effectively.

Which of the Following Is a Problem in Pursuing Monetary