Which of the following is considered a limitation of monetary policy? Question 38 options: the cause-effect chain its cyclical asymmetry its isolation from political pressure the speed with which it can be implemented
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One limitation of monetary policy is that the Federal Reserve cannot force individuals and banks to lend or borrow money even if the interests rate change by a lot. There could be other factors in play besides the interest rates. This limitation is known as: Group of answer choices The Recognition Lag The Implementation Lag The Financial System's Strength Uncertainty The Data Lag
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What is one of the main disadvantages of monetary policy, compared to fiscal policy? a) Monetary policy takes longer to implement, because of the extra time it takes for congress to approve monetary policies. b) The central bank can only manage inflation, not unemployment. c) Central banks cannot lower interest rates below zero, even if the economy is in a recession. d) Relying too heavily on monetary policy requires the government to impose austerity by cutting spending.
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