Why Is Accountability for Monetary Policy Choices (As Opposed to Giving

question 71

Multiple Choice

Why is accountability for monetary policy choices (as opposed to giving policymakers undisciplined discretion) important?

• A) Monetary policy has a large and lasting influence on aggregate demand and therefore on employment and income.
• B) Elected policymakers can benefit from manipulating monetary policy.
• C) Monetary policy announcements will be more credible.
• D) Countries with the most independent central banks tend to have the highest rates of inflation.

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Definitions:

Managerial Behaviour

The patterns of actions and attitudes exhibited by managers, impacting organizational performance and employee morale.

Kohlberg's Preconventional

The first level in Kohlberg's theory of moral development, where an individual's moral reasoning is based primarily on the consequences of a behavior and its direct effects on oneself.

Moral Development

Refers to the process through which individuals acquire and understand the distinctions between right and wrong, influencing their values, attitudes, and behaviors.

Personal Interest

Refers to an individual's hobbies, preferences, or passions that drive their personal satisfaction and motivation.