The main argument in favor of Fed independence is that
A) interest rates would probably be lower if Congress controlled the Fed; thus hurting savers.
B) the Constitution requires it.
C) monetary policy is too important and too technical to be determined in the political arena.
D) congressional control of the Fed was tried during the 1960s and did not work well.
C
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What has been the reaction of many governments to the failure of central planning?
What will be an ideal response?
The textbook tells us that in the short run, people typically ___________ price changes when compared to the long run
a. are very responsive to b. are more sensitive to c. are less sensitive to d. do not respond to e. are unaware of
A decrease in the dollar price of the English pound will make
a. U.S. exports to England increase. b. U.S. exports less expensive for the English. c. imports from England more expensive for Americans. d. U.S. exports to England decrease.
One can tell that Figure 8.4 shows short run costs because:
A. the slope of total costs and variable costs are the same. B. costs are rising. C. total costs are positive when output is zero implying fixed costs. D. All of these.