Which of the following is a problem in pursuing monetary policy?
A)The lag between a change in the quantity of money and its effect on economic activity may be long.
B)Monetary policy must be approved by the Congress.
C)The Fed must reveal to the public anytime the Fed changes its policy.
D)The Fed cannot control the federal funds rate.
E)None of the above answers is correct.

Question

Quizplus · Accepted Answer

The lag between a change in the quantity of money (such as a change in interest rates) and its effect on economic activity may take time to materialize, which can make it difficult for policymakers to accurately predict and implement effective monetary policy in a timely manner.

Which of the Following Is a Problem in Pursuing Monetary