When Central Banks Purposefully Choose to Only Stabilize Money and Price

question 36

Multiple Choice

When central banks purposefully choose to only stabilize money and price levels through monetary policy,it is known as ________ monetary policy.

• A) active
• B) expansionary
• C) contractionary
• D) adaptive
• E) passive

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Definitions:

Behaviour

Actions, reactions, or conduct of an individual or group in response to external or internal stimuli.

Self-efficacy

A belief in one's own capability to complete tasks and reach goals.

Bandura

Refers to Albert Bandura, a psychologist known for his work on social learning theory, emphasizing the role of observational learning, imitation, and modeling in behavior.

Confidence

The feeling of self-assurance arising from one's appreciation of their own abilities or qualities.