Critics of Fed Independence Argue

question 48

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 independence seemingly does little to guarantee good monetary policy.
• C) that its independence may encourage the Fed to pursue a course of narrow self-interest rather than the public interest.
• D) all of the above.

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Definitions:

Impossibility

A doctrine under which a party to a contract is relieved of his or her duty to perform when that performance has become impossible because of the occurrence of an event unforeseen at the time of contracting.

Express Condition

A clearly stated, specific requirement within a contract that must be met for the contract's promises to be enforceable.

Rose Bowl

A historic American annual college football bowl game played in Pasadena, California.

Breaches of Contract

Failures to fulfill the terms agreed upon in a contract, leading to legal disputes and remedies.