Which of the following makes timely and appropriate monetary policy more difficult to determine?
A)the existence of uncertainty
B)the presence of lags in the policy process
C)increasing global integration
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the options listed make timely and appropriate monetary policy more difficult to determine. The existence of uncertainty makes it challenging to forecast economic conditions accurately, which is essential for determining the optimal monetary policy. Lags in policy implementation mean that the effectiveness of policy changes may be delayed, and policymakers need to account for this delay when making decisions. Increasing global integration makes it more challenging for policymakers to control local economic conditions since external factors may impact the domestic economy. Therefore, all of these factors contribute to the difficulty of making timely and appropriate monetary policy decisions.

Which of the Following Makes Timely and Appropriate Monetary Policy