Multiple Choice
Which of the following policies is likely to enhance a central bank's credibility?
A) Announcing inflation targets
B) Appointing inflation doves as central bankers
C) Making the central bank obligated to finance the national deficit
D) Appointing central bankers for short terms that coincide with those in the legislative and executive branches of government
Correct Answer:

Verified
Correct Answer:
Verified
Q64: The inside lag is relatively shorter for
Q65: Shocks to _ require the Fed to
Q66: Shocks to aggregate demand _ require the
Q67: Following an adverse supply shock, people with
Q68: Lower taxes on interest income:<br>A)permanently lower growth
Q70: The speed at which an economy returns
Q71: A tax increase that affects both aggregate
Q72: The time between when Congress decides to
Q73: Announced numerical inflation targets are advocated for
Q74: By changing incentives, reductions in marginal tax