Which statement is correct regarding the Federal Reserve?
The Federal Reserve's decisions usually have an immediate effect on the economy's unemployment rate. The Federal Reserve has developed the ability to manage the economy with great precision.
Its control of the money supply is not connected to the performance of the economy.
Most economists believe that the Federal Reserve does more good than harm.
The correct statement regarding the Federal Reserve is:
Most economists believe that the Federal Reserve does more good than harm.
This reflects a general consensus among economists that, despite some criticisms and challenges, the Federal Reserve plays a crucial role in stabilizing the economy, managing inflation, and mitigating the effects of economic downturns. The other statements are either misleading or incorrect. For example, while the Federal Reserve's decisions can influence the economy, the effects on unemployment are not always immediate or direct. Additionally, the Federal Reserve's ability to manage the economy is limited and not always precise, and its control of the money supply is indeed connected to economic performance.