Giving the Fed a high degree of independence means that:
A)the Fed governors will not be as tempted by political pressure.
B)it is less likely to expand the money supply simply to make it cheaper for the government to repay its debt.
C)technocrats-rather than politicians-are in charge,which tends to increase people's trust in the stability of the dollar.
D)All of these are true.

Question

Quizplus · Accepted Answer

All of the listed options are true. Giving the Fed independence allows its governors to make decisions based on economic principles rather than political influence, reduces the likelihood of the Fed printing money to finance government spending, and increases public trust in the Fed's ability to maintain the value of the dollar.

Giving the Fed a High Degree of Independence Means That