Which of the following is false?
A)There is very little that policymakers can do today to materially affect the current performance of the economy.
B)The Fed's actions or its failure to take action today may aggravate inflation and cyclical fluctuations later.
C)Increasing interdependence among the economies of the world implies that U.S. policymakers have more control over the performance of the U.S economy than they had in the past.
D)The rationale behind intermediate targets is this: If the Fed hits the intermediate target, it will come reasonably close to achieving its economic objectives.

Question

Quizplus · Accepted Answer

Increasing interdependence among the economies of the world implies that U.S. policymakers have less control over the performance of the U.S economy than they had in the past. The global economy is now highly interconnected, and economic events in one country can have far-reaching effects on others. As a result, policymakers must take into account not only domestic factors but also global economic conditions when making decisions related to the economy.

Which of the Following Is False