The Strongest Argument for an Independent Federal Reserve Rests on the View

question 36

Multiple Choice

The strongest argument for an independent Federal Reserve rests on the view that subjecting the Fed to more political pressures would impart

• A)an inflationary bias to monetary policy.
• B)a deflationary bias to monetary policy.
• C)a disinflationary bias to monetary policy.
• D)a countercyclical bias to monetary policy.

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Definitions:

Neurological

Pertaining to the nervous system, including the brain, spinal cord, and nerves, involving the study and treatment of its structure, functions, and disorders.

Sensorimotor Stage

Piaget’s first stage of cognitive development, which lasts through infancy and is generally characterized by increasingly complex coordination of sensory experiences with motor activity.

Cognitive Development

The progression of learning and mental abilities, including thinking, problem-solving, and decision-making, from infancy through adulthood.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.