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A Prominent Economist Was Quoted as Saying, "The Central Bank

Question 8

Multiple Choice

A prominent economist was quoted as saying, "The central bank should have the flexibility to respond to potential financial crises without being limited in the actions it might take." Based on this comment, this economist supports a


A) "rules" strategy of the central bank.
B) "crisis" strategy of the central bank.
C) "discretion" strategy of the central bank.
D) "unanticipated" strategy of the central bank.

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