The Situation in Which Central Bankers Are Insulated from Short-Term

question 34

Multiple Choice

The situation in which central bankers are insulated from short-term political considerations and are allowed to take a long-term view of the economy is called:

• A)being an inflation dove.
• B)being an inflation hawk.
• C)central bank independence.
• D)the inside lag of monetary policy.

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Definitions:

Efficacy

The ability to produce a desired or intended result, often used in the context of medications or treatments.

Accepted Treatment

Medical procedures or therapies that are widely recognized and approved by healthcare professionals and authorities for treating specific conditions.

Ethically

Acting in ways that are morally right and in accordance with principles of conduct governing an individual or group.

Experimental Treatment

A new or untested medical intervention or drug being studied to evaluate its effectiveness and safety.