All of the following are benefits of the Fed having only the single goal of price stability EXCEPT
A) the Fed would be more credible.
B) the Fed would be free from political pressures.
C) the fed would not be distracted and led astray by other concerns.
D) there would be greater reliance on fiscal policy for economic stabilization.

Question

Quizplus · Accepted Answer

If the Fed had only the single goal of price stability, it would still have the responsibility of promoting maximum employment as outlined in the Federal Reserve Act. However, if the Fed were to solely focus on price stability, there might be a reduced reliance on monetary policy for economic stabilization, and thus an increased reliance on fiscal policy.

All of the Following Are Benefits of the Fed Having