In a worst case scenario the Federal Reserve is least successful at counteracting a negative
A) AD shock.
B) real shock.
C) velocity shock.
D) None of the answers is correct.

Question

Quizplus · Accepted Answer

The Federal Reserve is least successful at counteracting a negative real shock, as it is a shock to the supply side of the economy and cannot be directly addressed through monetary policy. AD shocks and velocity shocks are demand-side shocks that can be addressed through monetary policy.

In a Worst Case Scenario the Federal Reserve Is Least