Michael Woodford Says the Following Is an Advantage of Interest-Rate

question 32

Multiple Choice

Michael Woodford says the following is an advantage of interest-rate instruments for central banks.

• A) Conduct monetary policy without inflation.
• B) Conduct monetary policy even if checking deposits pay interest at competitive rates.
• C) Conduct monetary policy without government approval.
• D) Conduct monetary policy with consumers in mind.
• E) Conduct monetary policy with workers in mind.