Monetary policymakers tend to be conservative because
A) they are old and boring.
B) their actions influence the public's expectations.
C) their actions have no effect on the public's expectations.
D) they do not want to increase the federal budget deficit.

Question

Quizplus · Accepted Answer

Monetary policymakers tend to be conservative because their actions influence the public's expectations. Their decisions affect the economy and can have consequences. For example, if they increase interest rates, it can slow down economic growth and decrease inflation, but it can also make borrowing more expensive for individuals and businesses. As such, policymakers typically aim to make gradual and cautious changes to avoid unexpected outcomes and preserve stability.

Monetary Policymakers Tend to Be Conservative Because