Giving the Fed a High Degree of Independence Means That

question 56

Multiple Choice

Giving the Fed a high degree of independence means that:

• A)the Fed governors will not be as tempted by political pressure.
• B)it is less likely to expand the money supply simply to make it cheaper for the government to repay its debt.
• C)technocrats-rather than politicians-are in charge,which tends to increase people's trust in the stability of the dollar.
• D)All of these are true.

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