Which of the following arguments is often used by opponents of Federal Reserve independence?
A) Independence slows the policy decision process.
B) Independence causes inflationary pressures to build because of excessive monetary growth.
C) Independence leads to conflicts between monetary and fiscal policy.
D) Independence causes a concentration of financial power.
C
You might also like to view...
What is the modern view of the Phillips curve?
What will be an ideal response?
Thinking about the Coase theorem, the private solution yields __________ amount of efficiency and ___________ distribution of surplus as compared to a government solution.
A. the same; the same B. the same; a different C. a different; the same D. a different; a different
The short-run macro model
a. is an attempt to explain why the economy tends to perform better in the short run than in the long run b. was developed during the Great Depression to explain the economy's continuing poor performance c. lost its popularity during the 1950s d. was developed during the early 19th century e. explains the forces that work to drive the economy to full employment
In his famous article published in an economics journal in 1958, A.W. Phillips
a. used data for the United States to show a negative relationship between the rate of change of the U.S. consumer price index and the U.S. unemployment rate. b. used data for the United States to show a negative relationship between the rate of change of wages in the U.S. and the U.S. unemployment rate. c. used data for the United Kingdom to show a negative relationship between the rate of change of the U.K. consumer price index and the U.K. unemployment rate. d. used data for the United Kingdom to show a negative relationship between the rate of change of wages in the U.K. and the U.K. unemployment rate.