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

Question

Quizplus · Accepted Answer

The economists believe that attempts by the Central Bank to surprise the public in a systematic way cannot be successful because the public would eventually figure out what the Bank's policies were, negating the Bank's surprise. Option A and D are not relevant to the given explanation. Option B is incorrect because the Bank announces its goals and publishes its policy actions after six weeks, which is not relevant to the question of the success of surprising the public systematically.

The Reason Why Some Economists Believe That Attempts by the Central