Keeping Interest Rates Stable Is

question 102

Multiple Choice

Keeping interest rates stable is:

• A) the most important goal for a central bank.
• B) a key goal, because stable interest rates will result in all other goals being achieved.
• C) a secondary goal for central banks.
• D) not a goal of the central bank.

---

Definitions:

Comparative Advantage

The proficiency of an entity, whether it's an individual, corporate body, or state, to create a good or offer a service at a more economical opportunity cost than its competition.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing a particular course of action.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to more efficient global production patterns.

Specialize

The process of focusing efforts and resources on a narrow area of expertise to increase efficiency and proficiency.