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AP® Macroeconomics

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Constitution and Money Creation

APMACR-3RDERG

According to the Constitution, the power to coin money and set its value is a power of Congress.

Why is it that the FED (Federal Reserve System) can do it?

A

What the FED does is not related to that specific power of Congress.

B

The FED asks Congress for permission whenever it wants to change Money Supply.

C

The power has been delegated by Congress to the FED so it no longer has any authority over money creation.

D

The power was delegated by Congress and the FED must agree to Congressional oversight.

E

The leaders of the FED are all members of Congress so it really is still in charge.