When a Central Bank Reacts the Same Way to a Shock

question 96

Multiple Choice

When a central bank reacts the same way to a shock every time,it is likely using:

• A) policy discretion.
• B) a policy rule.
• C) a bandwagon policy.
• D) a wait-and-see policy.

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Definitions:

Trademark

A distinctive sign, symbol, or phrase legally registered or established by use as representing a company or product.

Domain Name

A unique address on the internet that identifies a website and typically consists of a website name and a domain extension like .com or .net.

Due Process Clause

A clause in the Fifth Amendment of the U.S. Constitution providing that the government cannot deprive an individual of life, liberty, or property without a fair and just hearing.

Involuntarily Transfer

The forced transfer of an asset or property without the owner's consent, often due to legal actions like bankruptcy or foreclosure.