The Main Argument in Favor of Fed Independence Is That

question 64

Multiple Choice

The main argument in favor of Fed independence is that

• A)interest rates would probably be lower if Congress controlled the Fed; thus hurting savers.
• B)the Constitution requires it.
• C)monetary policy is too important and too technical to be determined in the political arena.
• D)congressional control of the Fed was tried during the 1960s and did not work well.

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Definitions:

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from revenue.

Units

A basic measure or quantity of a product, service, or resource, often used in manufacturing, inventory, and accounting.

Contribution Margin Ratio

The percentage of each sales dollar that remains after variable costs are subtracted, contributing to fixed costs and profit.

Fixed Monthly Expenses

Costs that do not vary in total within a reasonably short time frame, such as rent, salaries, and insurance premiums, paid on a monthly basis.