Advocates of Fed Independence Fear That Subjecting the Fed to Direct

question 69

Multiple Choice

Advocates of Fed independence fear that subjecting the Fed to direct presidential or congressional control would

• A) impart an inflationary bias to monetary policy.
• B) force monetary authorities to sacrifice the long-run objective of price stability.
• C) make the so-called political business cycle even more pronounced.
• D) do all of the above.
• E) do only A and B of the above.

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Definitions:

Eruption Column

A column of gases, ash, and volcanic rock emitted into the atmosphere during a volcanic eruption, which can affect climate and aviation.

Pyroclastic Flow

A rapid stream of heated gas and volcanic substances flowing down a volcano's slopes amid an explosive eruption.

Tephra

A pyroclastic material, regardless of size or origin, ejected during an explosive volcanic eruption; includes ash, pumice, and rock fragments.

Gas Flux

The rate of gas transfer from one phase or place to another, often measured in environmental and geological studies.