Once a new rule is adopted by the Fed, _____
A) they immediately pursue a passive policy.
B) they use automatic stabilizers to implement it.
C) that rule is followed until circumstances warrant a new rule.
D) they take actions to offset their old rules.
E) they blame politicians for having to adopt a new rule.

Question

Quizplus · Accepted Answer

Once a new rule is adopted by the Fed, it is followed until circumstances warrant a new rule. The Fed is responsible for implementing and enforcing its own policies, and it is not their practice to blame politicians for adopting a new rule. The use of automatic stabilizers or the pursuit of a passive policy may be tools or strategies that the Fed employs in achieving its objectives, but they are not directly related to the adoption of a new rule. Taking actions to offset old rules may also be necessary, but it is not a given with the adoption of a new rule.

Once a New Rule Is Adopted by the Fed, _____