Multiple Choice
The non-democratic character of the Board of Governors of the Federal Reserve System helps support ________.
A) the political business cycle
B) the time-inconsistency problem
C) its independence
D) rational expectations of Federal Reserve behavior
Correct Answer:

Verified
Correct Answer:
Verified
Q35: An example of the political business cycle
Q36: The time-inconsistency problem involves the _.<br>A)difficulties of
Q37: Rational expectations theory suggests that _.<br>A)policy announcements
Q38: The notion that the central bank should
Q39: The danger in using data to estimate
Q41: If the public believes the commitment to
Q42: The country with the highest degree of
Q43: Central bank independence _.<br>A)is receding as democratic
Q44: Under what circumstances might it be "rational"
Q45: The negative supply shock of 2007,compared to