Which of the Following Would Reduce the Political Incentive to Change

question 64

Multiple Choice

Which of the following would reduce the political incentive to change interest rates in the economy?

• A) Allowing central banks to make fiscal policy decisions.
• B) Providing central banks with an inflation target.
• C) Increasing the time lag involved in monetary policy.
• D) Allowing the government to appoint the key policy makers in the central bank.

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