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:

Overextension

A linguistic phenomenon in early child language acquisition where a child applies a word more broadly than its usual adult meaning.

Pragmatic Error

A mistake in language use or understanding that occurs when the rules of social language interaction are violated, affecting the effectiveness of communication.

Syntactical Error

A violation of the rules that govern the structure of sentences in a given language, often leading to confusion or misunderstanding in communication.

Performance-Oriented

Focused on achieving specific outcomes or levels of success, often measured by external standards or comparisons with others.