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Explain two concepts of central bank independence. Is the Fed politically independent? Why do economists think central bank independence is important?
Compromise Mechanism
A conflict resolution strategy where parties involved in a dispute reach an agreement by making concessions and finding a middle ground.
Defense Mechanisms
Psychological strategies employed unconsciously to protect an individual from anxiety and perceived threats to self-esteem or self-concept.
Compensation
A compromise mechanism in which an individual attempts to make up for a negative situation by devoting himself or herself to another pursuit with increased vigor.
Conflict Management Techniques
Strategies and practices used to address and resolve disagreements and disputes in a constructive manner.
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