All of the Following Are Benefits of the Fed Having

question 39

Multiple Choice

All of the following are benefits of the Fed having only the single goal of price stability EXCEPT

• A) the Fed would be more credible.
• B) the Fed would be free from political pressures.
• C) the fed would not be distracted and led astray by other concerns.
• D) there would be greater reliance on fiscal policy for economic stabilization.

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Definitions:

Scarce Resources

Essential inputs used in the production of goods and services that are limited in availability, necessitating effective management and allocation.

Bargaining Skills

Abilities used to negotiate favorable terms during discussions, often involving compromise to reach a mutually acceptable agreement.

Accommodating

A conflict management style in which one cooperates with the other party while not asserting one’s own interests.

Cooperates

To work or act together towards a common goal or purpose.