In Order to Maintain Stable Prices, a Central Bank Must

question 105

Multiple Choice

In order to maintain stable prices, a central bank must

• A)maintain low interest rates.
• B)keep unemployment low.
• C)tightly control the money supply.
• D)sell indexed bonds.

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Definitions:

Zimbardo

A psychologist known for his research on social roles and conformity, particularly the Stanford prison experiment which examined the effects of perceived power and authority in a simulated prison setting.

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Milgram

Refers to Stanley Milgram, an American social psychologist best known for his controversial experiments on obedience to authority figures.