The Theory of Bureaucratic Behavior Suggests That the Federal Reserve

question 73

Multiple Choice

The theory of bureaucratic behavior suggests that the Federal Reserve will

• A) try to avoid a conflict with the president and Congress over increases in interest rates.
• B) try to gain regulatory power over more banks.
• C) devise clever strategies in an effort to avoid blame for poor economic performance.
• D) do all of the above.

---

Definitions:

Southern California

A geographical and cultural region in the southwestern part of the U.S. state of California.

Second-degree Price Discrimination

A pricing strategy where prices vary according to quantity sold or consumed, size, or version of the product, not directly by consumer identity.

Quantity Blocks

Predefined quantities of goods or services, often used in pricing or packaging.

Third-degree Price Discrimination

A pricing strategy where different prices are charged to different groups of customers based on their willingness to pay.