Which of the Following Is a Reason That the Fed

Multiple Choice

Which of the following is a reason that the Fed does not traditionally attempt to limit asset price bubbles?

A) The Fed's policies cannot be targeted at only one sector of the economy.
B) Price changes for one asset or one industry cannot have a substantial impact on the entire economy.
C) The FDIC rather than the Fed is responsible for recognizing bad lending practices.
D) All of these responses are correct.