If the Fed were to focus only on inflation:
A. the private sector would become less responsive to the Fed’s policies.
B. its capacity to fight recessions would be diminished.
C. its independence from political pressures would decrease.
D. its credibility would be reduced.
Answer:B
If the Fed were to focus only on inflation:
A. the private sector would become less responsive to the Fed’s policies. B. its capacity to fight recessions would be diminished. C. its independence from political pressures would decrease. D. its credibility would be reduced.