Which of the Following Statements Is True

question 123

Multiple Choice

Which of the following statements is true?

• A)Central bank independence guarantees that central banks won't make more mistakes than they would if they were not independent.
• B)Central bank independence guarantees that the central bank will always pursue price stability.
• C)Independent central banks do not need to be held accountable for their actions.
• D)Central bank independence can be taken too far.
• E)Central banks should pursue the goal of price stability at all costs.

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Definitions:

Welfare System

A government program designed to provide financial and other assistance to individuals and families in need.

Self-sufficiency

The ability of an individual, community, or nation to provide for its own needs without relying on external assistance.

Generous Level

A term not typically used in a specific technical context but generally refers to an amount or degree of something that is ample or more than adequate.

Two-tier Welfare

A welfare system structured on two levels, where basic universal benefits are provided, and additional supports can be accessed based on specific eligibility criteria.