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recent financial innovation makes the federal reserve s job of conducting monetary p 637835

Measuring Money

1) Recent financial innovation makes the Federal Reserve”s job of conducting monetary policy

A) easier, since the Fed now knows what to consider money.

B) more difficult, since the Fed now knows what to consider money.

C) easier, since the Fed no longer knows what to consider money.

D) more difficult, since the Fed no longer knows what to consider money.

2) Defining money becomes ________ difficult as the pace of financial innovation ________.

A) less; quickens

B) more; quickens

C) more; slows

D) more; stops

3) Monetary aggregates are

A) measures of the money supply reported by the Federal Reserve.

B) measures of the wealth of individuals.

C) never redefined since “money” never changes.

D) reported by the Treasury Department annually.

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