In order to maintain stable prices, the central bank must:
A) be more accountable to the public
B) maintain strict control over the money supply
C) hire more economists

Question

Quizplus · Accepted Answer

Maintaining strict control over the money supply is a critical tool for controlling inflation and ensuring stable prices. The central bank can adjust interest rates, reserve requirements, and other monetary policy tools to manage the supply of money in the economy and keep prices within a reasonable range. While accountability and a strong team of economists are also important, they may not be sufficient on their own to achieve price stability.

In Order to Maintain Stable Prices, the Central Bank Must