Final answer:
The Federal Reserve has a tough job because it influences monetary policy, requiring a delicate balance to stimulate growth, prevent inflation, and maintain stability especially during times when fiscal policy is limited by concerns about deficits and debt.
Step-by-step explanation:
Which statement explains why the Federal Reserve has a tough job? the correct answer is (d) the Federal Reserve influences monetary policy. the Federal Reserve's primary function is to conduct the nation's monetary policy by managing interest rates and credit conditions to influence the level of economic activity. This task is challenging because the Fed needs to balance stimulating economic growth with preventing inflation and maintaining financial stability.
Moreover, the Fed's role is complicated when fiscal policy is constrained, such as when there are concerns about high federal budget deficits and public debt.