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:

Interpersonal Determinant

Influences on decision-making that stem from interactions with other people, such as peer pressure, cultural norms, or communication with family members.

Family Influences

Refer to the impact that family members have on an individual's attitudes, behavior, beliefs, and values throughout their life.

Attitudes

A person's feelings or opinions about someone or something, typically reflected in their behavior.

Perceptions

The way in which something is regarded, understood, or interpreted by individuals, often influencing their behavior and decisions.