An independent central bank is an advantage for monetary policy because
A) central banks can employ the most able staff if they have the independence to pay high salaries.
B) central banks have direct and frequent contact with commercial banks.
C) central banks do not have the same incentive as politicians to break their promises to keep inflation down.
D) central banks have greater expertise in monetary policy than government finance departments.
Correct Answer:
Verified
Q42: Suppose that a central bank unexpectedly pursues
Q47: A policy of inflation targeting generally involves
Q48: Explain how the effects of a shift
Q104: Why does a downward-sloping Phillips curve imply
Q105: Some economists argue suddenly reducing money supply
Q110: The Phillips curve and the short-run aggregate
Q112: In the long run what primarily determines
Q114: Suppose that the economy is at an
Q115: Explain the connection between the vertical long-run
Q117: Some countries have had relatively high inflation
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents