What are the main arguments for the Fed's independence? (Check all that apply.) A. It would be less democratic for elected officials to control monetary policy. B. Monetary policy is too important to be left to politicians, who are not economists and have their own political interests at stake. C. An independent Fed makes a political business cycle less likely. D. Only an independent central bank can deal with a financial crisis without causing an increase in unemployment and inflation.
What are the main arguments for the Fed's independence? (Check all that apply.) A. It would be less democratic for elected officials to control monetary policy. B. Monetary policy is too important to be left to politicians, who are not economists and have their own political interests at stake. C. An independent Fed makes a political business cycle less likely. D. Only an independent central bank can deal with a financial crisis without causing an increase in unemployment and inflation.
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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What are the main arguments for the Fed's independence? (Check all that apply.)
A. It would be less democratic for elected officials to control monetary policy .
B. Monetary policy is too important to be left to politicians, who are not economists and have their own political interests at stake.
C. An independent Fed makes a political business cycle less likely.
D. Only an independent central bank can deal with a financial crisis without causing an increase in unemployment and inflation.
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