The reason why some economists believe that attempts by the Fed to surprise the public in a systematic way cannot be successful is that
A)information about the Fed's plans will inevitably be leaked to the public.
B)the Fed announces its goals before Congress and publishes its policy actions in the Federal Reserve Bulletin six weeks after they take place.
C)the public would eventually figure out what the Fed's policies were, negating the Fed's surprise.
D)competition in the money markets would neutralize the Fed's intervention.

Question

Quizplus · Accepted Answer

Even if the Fed attempts to surprise the public with its policies, the public would eventually figure out what the Fed's policies were, negating the Fed's surprise. This is because once the Fed implements its new policies, their effects on markets and the economy will become apparent, allowing the public to ascertain their nature.

The Reason Why Some Economists Believe That Attempts by the Fed