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:

Keep Demand

Strategies or practices employed to maintain or increase the desire for products or services among consumers or clients.

Human Resource Strategy

An organizational plan focusing on the management of human capital to align with the objectives and needs of the business.

Labour

The human effort, physical or mental, used in the production of goods and services.

Jobs

Positions of employment where individuals perform specific tasks in exchange for compensation.