Which of the Following Is FALSE

Multiple Choice

Which of the following is FALSE?

A) The Fed signifies its current monetary policy by making announcements about its interest rate target.
B) If the Fed wishes to lower the interest rate, it can do so by buying bonds.
C) Following a monetary rule avoids the problems associated with the lags inherent in discretionary monetary policy.
D) Monetarists advocate using discretionary monetary policy to smooth out fluctuations in the level of business activity.