Compared to an independent central bank, elected officials are likely to:
A. favor long-run stability over short-term prosperity.
B. choose monetary policies that are overly accommodative.
C. prefer interest rates to vary more often.
D. sacrifice short-term growth to keep future inflation low.
Answer: B
You might also like to view...
Which of the following describes a situation in which demand must be inelastic?
a. The price of pens rises by 10 cents, and quantity of pens demanded falls by 50. b. The price of pens rises by 10 cents, and total revenue rises. c. A 20 percent increase in the price of pens leads to a 20 percent decrease in the quantity of pens demanded. d. Total revenue does not change when the price of pens rises. e. Total revenue decreases when the price of pens rises.
Total GDP is the best way to identify a less-developed country
a. True b. False Indicate whether the statement is true or false
Why are graphs such an important tool in economics?
Suppose that you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H) = 300H - 20H2 and C(H) = 55H + 60H2. The corresponding formulas for marginal benefit and marginal cost are MB(H) = 300 - 40H and MC(H) = 55 + 120H. For how many hours should you hire your mechanic?
A. 1.53 hours B. 0.65 hours C. 6 hours D. 0 hours