Question

What is a good argument for Federal Reserve autonomy (independence)?

Question 41 options:

a)	to keep the Federal Reserve accountable to the voters.

b)	because what's economically needed may not be politically feasible

c)	to keep politicians happy

d)	so that the Federal Reserve can push for a gold standard

Answer 1

Option B is right answer

economy has its own goals based on demand & supply chain of economy without Fed autonomy, it could be influenced by politicians focused on upcoming elections

Option A, C, D are incorrect because

Politician for self objectives might enact an expansionary monetary policy to lower unemployment in order to get their government elected also It should not be regulated by voters here Political Happiness is not good for any Economy Political happiness can be achieved by both good or bad way rulings of government

Gold standard is different concept based on interest rates used for different purpose not completely associated with fed autonomy