Multiple Choice
According to the misperceptions theory,if the Fed wanted to use monetary policy to influence the real economy it would have to
A) increase the money supply whenever the economy was in a recession.
B) decrease the money supply whenever the economy was in an inflationary boom.
C) surprise the public with unexpected changes in monetary policy.
D) abide by the monetary targets it announced.
Correct Answer:
Verified
Correct Answer:
Verified
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