From time to time, Fed officials have _____
A) not had enough information to pursue an active policy.
B) used active intervention only if an economy was in recession.
C) used discretion to change the rules as circumstances changed.
D) taken actions to offset their current policy.
E) preferred to emphasize an active fiscal policy.

Question

Quizplus · Accepted Answer

Fed officials have used discretion to change the rules as circumstances change. This is seen in their decisions to adjust interest rates or implement quantitative easing measures during times of economic uncertainty or inflationary pressure.

From Time to Time, Fed Officials Have _____