The description (the Right Panel) is absolutely correct. That's exactly what the Fed should be doing. It does not have to take a sledge hammer after interest rates. A little tinkering here, a bit of maneuvering there and the Fed has done its job. A little bit of money added here, a little bit taken away there. That's the Fed's job. Steady as she goes.
The problem is that A is not meant to raise revenues
B and E are better combined. Sometimes the Fed should add money. Sometimes she should subtract it, but you can't answer both (I take it).
D: you wish was true. The fed has no part in what politicians do. America has elected people who treat money as a Halloween treat. The people want ... well there's no reason why we can't give it to them. No the Fed has no control over D.
The Fed also does not control anything to do with banks and customers -- that's a whole different story. C is just not it's mandate.
Poor as A is, That's your answer.
