Which of the Following Policies Is Likely to Enhance a Central

question 69

Multiple Choice

Which of the following policies is likely to enhance a central bank's credibility?

• A)Announcing inflation targets
• B)Appointing inflation doves as central bankers
• C)Making the central bank obligated to finance the national deficit
• D)Appointing central bankers for short terms that coincide with those in the legislative and executive branches of government

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Definitions:

Psychotherapy

A treatment method that involves psychological techniques to help a person change behavior and overcome problems in desired ways.

Psychological Disorders

Patterns of behavior or mental processes that are connected with emotional distress or significant impairment in functioning.

Behavior Therapists

Specialists who apply principles of learning and conditioning to help clients change undesirable behaviors.

Learning-Based Procedures

Techniques or interventions that are founded on the principles of learning theory to effect changes in behavior or cognition, often used in therapy or education.