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One Argument for an Independent Central Bank Is

Question 54

Multiple Choice

One argument for an independent central bank is:


A) successful monetary policy requires a long time horizon usually well beyond the next election of most public officials.
B) without independence competent people would not take a position in a central bank.
C) the central bank usually hires more competent individuals than the Treasury department or other finance ministries.
D) central bankers have a short-run focus that usually corrects problems faster.

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