Economists who work at the Fed recognize that a stimulative monetary policy will not always cure a high unemployment rate and could even ignite inflation.

Question

Quizplus · Accepted Answer

This statement is true. Economists at the Fed understand that there are limits to the effectiveness of monetary policy and that it can have unintended consequences, such as inflation. They often need to strike a balance between promoting economic growth and maintaining price stability.

Economists Who Work at the Fed Recognize That a Stimulative