The Fed's Job in Manipulating Monetary Policy Is Made Harder

Multiple Choice

The Fed's job in manipulating monetary policy is made harder by the fact that:

A) monetary authorities do not have a good understanding of how monetary policy works.
B) monetary policy is usually pulling the economy in the opposite direction from fiscal policy.
C) the Fed operates in real time and information on recessions becomes available with a lag.
D) monetary policy is hardly ever effective in influencing business fluctuations.