The primary function of central banks is to:
A. increase risk and volatility to increase compensation.
B. increase the uncertainty that firms face in making investment decisions.
C. eliminate the need for banks to collect financial information.
D. control inflation, as well as help reduce the size and frequency of business cycle fluctuations.
Answer: D
You might also like to view...
Explain how it is possible for marginal product to fall while average product is rising?
What will be an ideal response?
An economy with only the household and firm sectors is called:
A) a mixed economy. B) a private economy. C) a command economy. D) none of the above.
Trade restrictions result in all of the following except one. Which is the exception?
a. higher prices b. fewer choices c. improved quality d. misallocation of resources e. reduced competition
Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973–1995 period.
What will be an ideal response?