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:

Operant Conditioning

A learning process in which the likelihood of a behavior is increased or decreased through reinforcement or punishment.

Reinforcement

A process in behavioral psychology that increases the likelihood of a behavior being repeated, through positive or negative stimuli.

Discriminative Stimulus

A stimulus in the environment that increases the probability of a particular behavioral response due to its association with a reinforcement or punishment.

Stop Sign

A traffic sign designed to inform drivers that they must come to a complete stop and not proceed until it is safe to do so.