The case for Federal Reserve independence includes the idea that
A) political pressure would impart an inflationary bias to monetary policy.
B) a politically insulated Fed would be more concerned with long-run objectives and thus be a defender of a sound dollar and a stable price level.
C) a Federal Reserve under the control of Congress or the president might make the so-called political business cycle more pronounced.
D) all of the above.
D
You might also like to view...
Which of the following is not a reason it is usually easier to obtain short-term debt financing than long-term debt financing?
a. Lenders of short-term loans do not require collateral. b. The dollar amounts of short-term loans are usually smaller than those of long-term loans. c. For the lender, the shorter repayment period means less risk of nonpayment. d. A close working relationship normally exists between the short-term borrower and the lender.
Which of the following statements correctly describes the term "conversion costs"?
A) the cost to convert finished goods to sales to customers B) the cost incurred for direct and indirect materials during production C) the cost of direct materials, direct labor, and manufacturing overhead costs incurred during production D) the cost of direct labor combined with manufacturing overhead