What are the operational components of central bank independence?
What will be an ideal response?
There are two operational components of central bank independence. The first is that monetary policymakers must be free to control their own budgets. Second, the bank's policies must not be reversible by people outside the central bank. Long terms of office also foster central bank independence by insulating bank officials from political pressure.
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With perfect price discrimination there is
A) an increase in consumer surplus. B) one single price. C) no deadweight loss. D) no producer surplus.
The policy of ________ exacerbated ________ problems as savings and loans took on increasingly huge levels of risk on the slim chance of returning to solvency
A) regulatory forbearance; moral hazard B) regulatory forbearance; adverse hazard C) regulatory agnosticism; moral hazard D) regulatory agnosticism; adverse hazard
Which of the following could be an institutional barrier to employment?
a. licensing requirements b. labor unions c. minimum wages d. all of the above
Larry was accepted at three different graduate schools, and must choose one. Elite U costs $50,000 per year and did not offer Larry any financial aid. Larry values attending Elite U at $60,000 per year. State College costs $30,000 per year, and offered Larry an annual $10,000 scholarship. Larry values attending State College at $40,000 per year. NoName U costs $20,000 per year, and offered Larry a full $20,000 annual scholarship. Larry values attending NoName at $15,000 per year. What is Larry's economic surplus from attending State College instead of his next best alternative?
A. $5,000 B. $40,000 C. $20,000 D. $10,000