Advocates of Fed independence fear that subjecting the Fed to direct presidential or congressional control would

Question

Quizplus · Accepted Answer

Advocates of Fed independence fear that subjecting the Fed to direct presidential or congressional control would not only impart an inflationary bias to monetary policy but also force monetary authorities to sacrifice the long-run objective of price stability and make the so-called political business cycle even more pronounced. Therefore, D is the correct answer.

Advocates of Fed Independence Fear That Subjecting the Fed to Direct