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In Gauging the Stance of Monetary Policy, Which of the Following

Question 1

Multiple Choice

In gauging the stance of monetary policy, which of the following is true?


A) The Fed relies on forecasts more than incoming data because forecasts are highly reliable and incoming data may have random fluctuations.
B) The Fed relies more on incoming data than forecasts because forecasts are often wide of the mark.
C) Increasing globalization makes monetary policy easier to implement.
D) Trends in incoming data can be picked up very quickly, usually in one month or less.

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