When a central bank makes joint decisions with the government's Treasury department,
A) the central bank is asserting its independence.
B) the government loses its ability to conduct fiscal policy.
C) the central bank risks losing credibility.
D) the government enhances its credibility.
C
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One of the assumptions of monopolistic competition is that firms produce differentiated products. What does this assumption imply about the demand curve facing a representative firm?
What will be an ideal response?
Which of the following is not a characteristic of long-run equilibrium in a monopolistically competitive market?
A) Production is at minimum average total cost. B) Marginal revenue equals marginal cost. C) Selling price equals average total cost. D) Selling price is greater than marginal cost.
Assume that the characteristic function of a coalition between three individuals named 1,2, and 3 is V(1,2,3) = $60; while V(1) = $20, V(2) = $16, and V(3) = $10, where V(i) is the value created by individual i. Which of the following allocations will lie within the core?
a. Payoffs to individuals 1,2, and 3 are $19, $35, and $6 respectively. b. Payoffs to individuals 1,2, and 3 are $30, $18, and $12 respectively. c. Payoffs to individuals 1,2, and 3 are $32, $20, and $8 respectively. d. Payoffs to individuals 1,2, and 3 are $28, $15, and $17 respectively.
When economists use the term "factors of production," they mean
a. labor, capital, and money b. labor, capital, land and money c. labor, capital, land and entrepreneurship d. labor, land, money and entrepreneurship e. money and entrepreneurship