The Theory of Bureaucratic Behavior When Applied to the Fed

question 63

Multiple Choice

The theory of bureaucratic behavior when applied to the Fed helps to explain why the Fed

• A)is supportive of congressional attempts to limit the central bank's autonomy.
• B)is so secretive about the conduct of future monetary policy.
• C)sought less control over banks in the 1980s.
• D)is willing to take on powerful groups that may threaten its autonomy.

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Definitions:

Smoothing Constant

A parameter in exponential smoothing models that controls the degree to which more recent observations are weighted more heavily than older observations.

Exponential Smoothing

A time series forecasting method for univariate data that applies weighting factors which decrease exponentially over time, emphasizing more recent observations.

Liquor Sales

The commercial activity of selling alcoholic beverages, including spirits, wines, and beers.

Smoothing Constant

A parameter used in exponential smoothing techniques that determines the weight given to the most recent observation in forecasting.