What do the authors mean by "insulate the FOMC from the political process"? Which politicians is the FOMC being insulated from? OA. State governors may pressure the FOMC to increase income tax rates to help increase tax revenues that the states collect. B. State governors may pressure the FOMC to lower income tax rates to help increase consumer spending and stimulate the economy. OG. When running for reelection, members of Congress and the president may pressure the FOMC to employ contractionary policy to help decrease the size of government deficits. OD. When running for reelection, members of Congress and the president may pressure the FOMC to employ expansionary policy without considering the long-term impacts.
What do the authors mean by "insulate the FOMC from the political process"? Which politicians is the FOMC being insulated from? OA. State governors may pressure the FOMC to increase income tax rates to help increase tax revenues that the states collect. B. State governors may pressure the FOMC to lower income tax rates to help increase consumer spending and stimulate the economy. OG. When running for reelection, members of Congress and the president may pressure the FOMC to employ contractionary policy to help decrease the size of government deficits. OD. When running for reelection, members of Congress and the president may pressure the FOMC to employ expansionary policy without considering the long-term impacts.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:What do the authors mean by "insulate the FOMC from the political process"? Which politicians is the FOMC being insulated from?
OA State governors may pressure the FOMC to increase income tax rates to help increase tax revenues that the states collect.
B. State governors may pressure the FOMC to lower income tax rates to help increase consumer spending and stimulate the economy.
OC. When running for reelection, members of Congress and the president may pressure the FOMC to employ contractionary policy to help decrease the size of government deficits.
OD. When running for reelection, members of Congress and the president may pressure the FOMC to employ expansionary policy without considering the long-term impacts.
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