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Why is the Fed's effective use of monetary policy limited by the global economy? I....

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Finance

Why is the Fed's effective use of monetary policy limited by the global economy?

I. The Fed must be careful to not destabilize the global economy when initiating monetary policy changes

II. Changes in the foreign exchange value of the U.S. dollar has an impact upon foreign trade

III. The U.S. is running a trade deficit that legally prohibit certain monetary policy initiatives

Select one:

a.

I only

b.

I and II only

c.

I and III only

d.

I, II, and III

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