The Heads of Central Banks Are Typically Very Conservative About

Multiple Choice

The heads of central banks are typically very conservative about inflation because:

A) they can influence expectations of inflation and those, in turn, influence actual behavior.
B) they can influence rational expectations and those, in turn, influence irrational expectations.
C) they can influence the budget deficit and, in turn, promote hyperinflation.
D) they can influence expectations of government spending and those, in turn, influence nominal wages.