Which of the Following Characterizes the Fed's Ability to Prevent

Multiple Choice

Which of the following characterizes the Fed's ability to prevent recessions?

A) The Fed is able to "fine tune" the economy and entirely eliminate recessions.
B) The Fed is incapable of changing aggregate demand through its monetary policy tools.
C) The Fed is able to keep a recession shorter and milder than it would otherwise be.
D) The Fed is able to eliminate the business cycle and achieve absolute price stability.