If a Central Bank Is Independent

question 281

Multiple Choice

If a central bank is independent,

• A)it has the ability to alter taxes.
• B)it allocates savings to firms.
• C)it restricts trade to increase domestic employment.
• D)it operations are not controlled by the political process.

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Definitions:

Punishment

The imposition of a penalty or negative consequence in response to an undesired behavior, often used in disciplinary contexts.

Negative Reinforcement

A behavior modification technique that involves the removal of an unpleasant stimulus to increase the likelihood of a behavior being repeated.

Punishment

A method used to reduce the likelihood of a behavior's recurrence by applying an adverse stimulus or removing a positive stimulus following the behavior.

Punishment

A consequence designed to reduce or eliminate a behavior through negative or unpleasant outcomes.