Most Central Banks in the Developed Countries Focus Their Attention

question 72

Multiple Choice

Most central banks in the developed countries focus their attention on

• A)the elimination of output gaps.
• B)reducing unemployment.
• C)the reduction and control of inflation.
• D)alleviating the harmful effects of inflation.
• E)the growth of potential output.

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Definitions:

Debt-Equity Ratio

A ratio calculating the balance of debt and equity utilized for financing a company's assets.

Risk-Free Rate

A hypothetical profit rate from a risk-free investment, usually shown by the earnings on state-backed securities.

Yield-to-Maturity

The total return anticipated on a bond if the bond is held until its maturity date, considering all interest payments and the repayment of principal.