The Strongest Argument for an Independent Federal Reserve Rests on the View

question 36

Multiple Choice

The strongest argument for an independent Federal Reserve rests on the view that subjecting the Fed to more political pressures would impart

• A)an inflationary bias to monetary policy.
• B)a deflationary bias to monetary policy.
• C)a disinflationary bias to monetary policy.
• D)a countercyclical bias to monetary policy.

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Definitions:

Voluntary

An action undertaken by an individual's free will without coercion or external pressure.

Consideration

In contract law, consideration refers to something of value exchanged between parties as part of an agreement, serving as the necessary element for a valid contract.

Assignee

A person, corporation, or entity to whom rights or interests have been transferred by another.

Delegatee

A person to whom duties, responsibilities, or authority is transferred from another, the delegator.