Either a dual or hierarchial mandate is acceptable as long as ________ is the primary goal in the ________.
A)price stability;short run
B)price stability;long run
C)reducing business-cycle fluctuations;short run
D)reducing business-cycle fluctuations;long run

Question

Quizplus · Accepted Answer

The primary goal of a central bank should be price stability in the long run, which means maintaining low and stable inflation over time. Both a dual mandate (which includes goals of price stability and maximum employment) and a hierarchical mandate (where maintaining price stability is the primary goal) can be acceptable as long as price stability remains the top priority in the long run to promote sustainable economic growth.

Either a Dual or Hierarchial Mandate Is Acceptable as Long