The reason that the Federal Reserve and monetary policy are INDEPENDENT from President/Congress is related toPossible overspending by the Congress creating price stability risksa.Potential inflation igniting actions and excessive spending by the governmentOb.Politician incentive to spend a lot of funds so to be liked by votersAll of the aboved.

please find the answer below.The reason why the federal reserve and the congress/ government are separated is, to ensure independency of the central bank, whose objective is to control inflation, regardless of the fact that who is in power. Otherwise the government will use it as a tool to get voters. Therefore, option C is the correct answer.

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Economics

The reason that the Federal Reserve and monetary policy are INDEPENDENT from President/Congress is related to Possible overspending by the Congress creating price stability risks Potential inflation igniting actions and excessive spending by the government b. Politician incentive to spend a lot of funds so to be liked by voters C. All of the above d.

The reason that the Federal Reserve and monetary policy are INDEPENDENT from President/Congress is related to Possible overspending by the Congress creating price stability risks Potential inflation igniting actions and excessive spending by the government b. Politician incentive to spend a lot of funds so to be liked by voters C. All of the above d.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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