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The Federal Reserve pursues five specific objectives to reduce economic and financial system volatility. The purpose of a monetary policy framework is to: A provide

The Federal Reserve pursues five specific objectives to reduce economic and financial system volatility. The purpose of a monetary policy framework is to:

A

provide the Fed with a measure of goal flexibility without having to communicate policy changes to the public that could disrupt financial markets.

B

make it clear to the public the specific goals that the Fed is pursuing.

C

allow the Fed to operate in secret in order to pursue monetary policy objectives more effectively.

D

give the Congress an opportunity to alter monetary policy, but within limits.

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