One thing the Fed has learned over the past twenty-five years is:
A. The money multiplier is fairly constant no matter what changes are made to the monetary base.
B. The theory of the money multiplier isn't very useful.
C. The money multiplier has a trend rate of growth that is fairly constant.
D. They should focus their attention on targeting M2.
Answer:B
One thing the Fed has learned over the past twenty-five years is:
A. The money multiplier is fairly constant no matter what changes are made to the monetary base. B. The theory of the money multiplier isn't very useful. C. The money multiplier has a trend rate of growth that is fairly constant. D. They should focus their attention on targeting M2.