What Is a Major Criticism of the Fed

question 2

Multiple Choice

What is a major criticism of the Fed?

• A) Its policies are designed to maximize GDP rather than to improve the overall quality of life for the public.
• B) Its policies undermine the legislative branch's ability to affect budgetary policy.
• C) It often acts in ways that are politically popular rather than in ways that are
• Fiscally sound.
• D) It is too concerned with keeping interest rates low when it should be more concerned about keeping inflation low.
• E) The Fed can make decisions that damage the economy, and voters have little recourse to hold members of the Fed accountable.

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Definitions:

Disruptive Member

A member of a group whose actions negatively impact the group's dynamics, productivity, or overall functioning.

Autokinetic Effect

A visual phenomenon in which a stationary point of light in a dark room appears to move due to small involuntary eye movements.

Conforming Behavior

Actions that align with the norms, values, or expectations of a social group or society.

Group Norms

Accepted standards and expectations that are shared by a group and guide the behavior of its members.