Suppose Legislation Requiring the Fed to Keep the Inflation Rate

question 45

Multiple Choice

Suppose legislation requiring the Fed to keep the inflation rate between 1.5% and 2.5% per year is passed by Congress.This law restricts the Fed's

• A) instrument independence.
• B) goal independence.
• C) both A and B of the above.
• D) neither A nor B of the above.

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Definitions:

Mental Abilities

The cognitive functions and capabilities of the brain, including reasoning, memory, problem-solving, and understanding.

Personality Structure

A framework used in psychology to categorize and understand the different components that make up human personality, such as traits, behaviors, and thought processes.

Spearman

A reference to Charles Spearman, a psychologist who contributed significantly to the development of factor analysis and the concept of general intelligence.

Psychological Tests

Standardized measures or assessments used to evaluate mental, emotional, or behavioral functioning and abilities.