The theory of bureaucratic behavior when applied to the Fed helps to explain why the Fed

Question

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The theory of bureaucratic behavior suggests that organizations like the Fed aim to maximize their autonomy and control over their domain. This explains why the Fed resists congressional attempts to limit its autonomy (A) and is secretive about future monetary policy (B), as both actions help to preserve its independence and effectiveness. The theory does not necessarily explain why the Fed would seek less control over banks, making E the correct choice.

The Theory of Bureaucratic Behavior When Applied to the Fed