Critics of Fed Independence Argue

question 3

Multiple Choice

Critics of Fed independence argue

• A) that it is undemocratic to have monetary policy controlled by an elite group responsible to no one.
• B) that an independent Fed conducts monetary policy with a consistent inflationary bias.
• C) that the Fed, since it does not face a binding budget constraint, spends too much of its earnings.
• D) only A and B of the above.

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Definitions:

Variable Time Interval

A schedule in operant conditioning where reinforcement is provided after varying intervals of time.

Variable Ratio Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable number of responses.

Fixed Ratio Schedule

A reinforcement schedule in behavioral psychology where a response is reinforced only after a specified number of responses.

Variable Interval Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable amount of time has passed.