In the United States, one problem with central bank independence is:
A. it is almost impossible to obtain because Congress controls the budget of the Federal Reserve.
B. central bank independence has not produced favorable results.
C. in a representative democracy, monetary policymakers must be held accountable to the public.
D. the central bank can control policy, but the U.S. Treasury issues currency.
Answer: C
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In the classical model, an increase in aggregate demand will cause
A) an increase in actual output, or Gross Domestic Product (GDP). B) a decrease in actual output, or Gross Domestic Product (GDP). C) a decrease in price level. D) an increase in price level.
Public goods are ________ in consumption
A) excludable but non-rival B) non-excludable and non-rival C) rival but non-excludable D) excludable and rival
What role do households play in the capital market? What role do firms play?
What will be an ideal response?
Some evidence suggested that intra-industry trade between similar countries had a _______ impact on domestic workers but later evidence indicates that it all depends on how ______ the labor market is.
a. small; sticky b. large; sticky c. small; flexible d. large; flexible