QUESTION 17 Support for the case against Fed independence includes _______. mani

Question

QUESTION 17

Support for the case against Fed independence includes _______.

manipulation of fiscal policy

facilitation of large budget deficits

lack of accountability

democratic election of fed members

1 points   

QUESTION 18

An advantage of monetary targeting as a strategy for the conduct of monetary policy includes _______.

information on whether the central bank is achieving its target is known almost immediate

lack of ability to change monetary policy

unreliable relationship between money and inflation

1 points   

QUESTION 19

The lender of last resort function provided by the Federal Reserve System creates a ______ problem by limiting financial institutions' risk of failure from liquidity issues even in the presence of increased risk exposure by institutions.

monetary policy

credit

reserves

moral hazard

manipulation of fiscal policy

facilitation of large budget deficits

lack of accountability

democratic election of fed members

Explanation / Answer

Support for the case against Fed independence includes _______.
Lack of Accountability

18. information on whether the central bank is achieving its target is known almost immediate

Monetary targeting has the advantage that it enables a central bank to adjust its monetary policy to cope with domestic considerations. Furthermore, information on whether the central bank is achieving its target is known almost immediately.

19. Credit risk

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