Author Question: Which of the following is a problem in pursuing monetary policy? A) The lag between a change in ... (Read 77 times)

stevenposner · **on:** Jun 29, 2018

Which of the following is a problem in pursuing monetary policy?

A) The lag between a change in the quantity of money and its effect on economic activity may be long.
B) The Fed must reveal to the public anytime the Fed changes its policy.
C) Monetary policy must be approved by the Congress.
D) The Fed cannot control the federal funds rate.
E) None of the above answers is correct.

Question 2

Explain the objective of the benevolent social planner.

What will be an ideal response?

TheNamesImani · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

The only goal of the benevolent social planner is to maximize the size of the economic pie, and she does this by using positive economic analysis in advising whether society is making the most of its scarce resources.