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:

Federal Law

Legislation enacted by the national government of a country that applies across the entire nation.

States

Distinct territorial and political units that make up a country, each with its own government and regulations.

Personal Communications

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Business Use

The utilization of goods, services, or information for the purpose of earning income or profit.