One argument for an independent central bank is:
A. the central bank usually hires more competent individuals than the Treasury department or other finance ministries.
B. without independence competent people would not take a position in a central bank.
C. central bankers have a short-run focus that usually corrects problems faster.
D. successful monetary policy requires a long time horizon usually well beyond the next election of most public officials.
Answer: D
You might also like to view...
If people expect the Fed to adopt a(n) ________ for several years, the long-run real interest rate will remain ________
A) contractionary fiscal policy; high B) expansionary fiscal policy; low C) expansionary monetary policy; low D) contractionary monetary policy; low
Globalization and growing technology have produced
A) more opportunities for low-skilled labor than for high-skilled labor. B) equal opportunities for low-skilled and high-skilled labor. C) outsized, exponential rewards for superstar talent. D) rewards for labor that have reduced income inequality.
The total payment to a lender for a one-period simple loan is
A) (P + i)n. B) P + i. C) i(1 + i). D) P(1 + i).
Which of the following is an advantage of an in-kind transfer in comparison to a cash payment?
a. In-kind transfers cost less to administer than cash transfers. b. In-kind transfers restrict the use of the benefit; thus, recipients receive necessities such as food and health care. c. In-kind transfers are more efficient than cash transfers. d. In-kind transfers give the recipient more utility than cash transfers.