Economists Are More Likely to Be in Favor of a Strict

question 4

Multiple Choice

Economists are more likely to be in favor of a strict monetary policy rule if they

• A)believe that the Phillips curve is close to vertical even in the short run
• B)believe that the economy is basically self-correcting
• C)want to minimize the problem of dynamic inconsistency
• D)favor a truly independent central bank
• E)all of the above

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Definitions:

Minutes

Written records of the main points and decisions made during meetings or formal gatherings.

Seven-digit Phone Number

A standard format for telephone numbers that includes a sequence of seven digits, often used in the United States and other countries.

Short-term Memory

The ability to keep a limited amount of data in a readily accessible and active condition for a brief duration.

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Pertaining to the senses or sensation.