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In Deciding on a Policy,the Fed Is Faced with Two

Question 58

Multiple Choice

In deciding on a policy,the Fed is faced with two difficult problems: The inability of experts to agree on the best measure of the degree of tightness of monetary policy and


A) a lack of data on financial markets.
B) a need for approval from Congress and the president.
C) the long lag between an action taken by the Fed and its effect on the economy.
D) an inability to decide on a proper definition of the monetary base.
E) the lack of an adequate research staff.

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