A Potential Problem of a More Politically Controlled Central Bank

question 30

Multiple Choice

A potential problem of a more politically controlled central bank is that

• A)politicians may want to pursue monetary policies that are bad in the short run but good in the long run.
• B)politicians may want to pursue monetary policies that are good in the short run but bad in the long run.
• C)politicians may take too long to decide on the direction of monetary policy.
• D)conducting both monetary policy and fiscal policy as part of the political process may produce inconsistent results.

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Definitions:

Compensatory Damages

Monetary compensation awarded to a plaintiff to compensate for actual losses or injuries suffered due to the defendant's actions.

Assault Victim

An individual who has suffered harm from an intentional act of physical violence or threat made against them.

Medical Expenses

Costs incurred for healthcare services, including treatments, surgeries, medications, and hospital stays.

Disparagement

A business tort that occurs when a statement is intentionally used to defame a business product or service.