One surprising insight from viewing policy as a "game" is that:
A) money growth has little or no impact on inflation in the long run.
B) decreasing money growth may substantially increase the rate of inflation in the long run.
C) central bankers should project an image of being conservative on economic policy matters, regardless of their personal views.
D) uncertainty over the impact of policy makes little difference in designing an optimal policy.
E) it is more difficult to control inflation when the central bank is highly independent.

Question

Quizplus · Accepted Answer

Central bankers projecting an image of being conservative can help manage expectations and maintain credibility, which is crucial for effective monetary policy.

One Surprising Insight from Viewing Policy as a "Game" Is