Multiple Choice
A central bank that is independent of the administration is desirable since
A) independence decreases the likelihood of political cycles
B) countries with independent central banks tend to have lower inflation rates
C) independence mitigates the problem of dynamic inconsistency
D) independence lends more credibility to monetary policy
E) all of the above
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Multiplier uncertainty is a major handicap for
Q4: Economists are more likely to be in
Q5: A big advantage of automatic stabilizers is
Q6: Multiplier uncertainty is defined as uncertainty about<br>A)the
Q7: The macroeconomic forecast of the Congressional Budget
Q9: Generally speaking, automatic fiscal stabilizers<br>A)raise the level
Q10: Most economists believe that<br>A)the expectations of firms
Q11: If policy makers were convinced that the
Q12: Stabilization policy is affected by inside lags,
Q13: After the attack on the World Trade