In the long run, the only economic variable that the Federal Reserve can affect is
A)inflation.
B)output.
C)unemployment.
D)the exchange rate.

Question

Quizplus · Accepted Answer

In the long run, the Federal Reserve can primarily influence inflation through its monetary policy. While it can have short-term effects on output, unemployment, and the exchange rate, these effects are not sustainable in the long run without leading to inflation or deflation.

In the Long Run, the Only Economic Variable That the Federal