Why Did Monetarist Critics of the Fed Welcome the Appointment

question 25

Multiple Choice

Why did Monetarist critics of the Fed welcome the appointment of Arthur Burns as chairman of the Board of Governors in 1970?

• A)Burns promised to make fighting unemployment his top priority.
• B)Burns promised to use the federal funds rate as an operating target.
• C)Burns promised to use monetary aggregates as targets.
• D)Burns promised to stabilize the exchange value of the dollar.

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Definitions:

Concentrated Energy

Energy that is intensified or focused within a small area or volume, often for the purpose of efficient transmission or usage.

Usable Energy

Energy in a form that can be directly applied to perform work or be processed into a form suitable for human needs, such as electricity or mechanical power.

Energy Transformation

The process of converting energy from one form to another, such as kinetic energy to electrical energy, fundamental to various natural phenomena and technologies.

Low-Quality Heat

Thermal energy that is at a temperature unsuitable or inefficient for conversion into work or other high-value energy forms.