In general,the Fed has not embraced a fixed-growth-rate monetary policy because
A)its adoption would cost them their jobs
B)no influential economists have yet come out in favor of it
C)the Fed has to answer to Congress,and Congress is not in favor of it
D)the Fed prefers active fiscal policy
E)they believe the economy is too complex and too changeable to make such a policy work consistently

Question

Quizplus · Accepted Answer

The Fed has not embraced a fixed-growth-rate monetary policy because they believe the economy is too complex and too changeable to make such a policy work consistently. Other factors, such as the fear of losing their jobs or Congress's opposition, may also play a role, but the complexity and variability of the economy are likely the primary reasons.

In General,the Fed Has Not Embraced a Fixed-Growth-Rate Monetary Policy