Which of the following appears to be evidence against the public interest view of the Fed's motivation?
A) The conflict with the Treasury over interest rate fixing during World War II.
B) The failure of the Fed to emphasize the goal of price stability.
C) The unwillingness of the Fed to turn over its excess profits to the Treasury.
D) The independence of Fed chairmen from the authority of the President.
B
You might also like to view...
Refer to Table 18-7. The tax system is
A) proportional throughout all levels of income. B) progressive throughout all levels of income. C) progressive between $10,000 and $12,000 of income and regressive between $16,000 and $22,000. D) regressive throughout all levels of income.
Refer to Figure 10.7. A movement from point A to point B could be caused by
A) a negative demand shock. B) a decrease in the term premium investors expect in the future. C) an increase in the default-risk premium. D) an increase in the expected rate of inflation.
When households' marginal propensity to consume (MPC) increases, the size of the spending multiplier:
a. also increases. b. decreases. c. remains unchanged. d. reacts unpredictably.
Arguably, the most important factor affecting economic well-being is
A. the inflation rate. B. the unemployment rate. C. the growth of budget deficits. D. the growth in productivity. E. the growth of monopoly power by firms.