Because of the multiple tools at its disposal, the Fed can control the money supply very precisely.

Name: Because of the multiple tools at its disposal, the Fed can control the money supply very precisely.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

While the Federal Reserve has several tools to influence the money supply, such as open market operations, reserve requirements, and the discount rate, its control is not precise due to the complexity of the economy and the behavior of banks and consumers.

Because of the Multiple Tools at Its Disposal, the Fed