Multiple Choice
Research indicates that the more independent the central bank,
A) the smaller the budget deficit.
B) the higher the nominal interest rate.
C) the lower the rate of inflation.
D) the larger the time inconsistency problem in making policy.
E) the greater the likelihood of a "war of attrition" over policy.
Correct Answer:

Verified
Correct Answer:
Verified
Q29: Based on an analysis of macroeconomic outcomes
Q30: In 1994,Republicans introduced their "Contract with America."
Q31: Balanced budget amendments are believed to be
Q32: Which of the following was one of
Q33: Explain whether uncertainty should cause policy makers
Q35: In _,would-be members of the Euro area
Q36: The Masstricht treaty set the budget ratio
Q37: As uncertainty about the effects of policy
Q38: Suppose a government have a stated policy
Q39: Assume that political business cycles do not