Why Is Accountability for Monetary Policy Choices (As Opposed to Giving

question 71

Multiple Choice

Why is accountability for monetary policy choices (as opposed to giving policymakers undisciplined discretion) important?

• A) Monetary policy has a large and lasting influence on aggregate demand and therefore on employment and income.
• B) Elected policymakers can benefit from manipulating monetary policy.
• C) Monetary policy announcements will be more credible.
• D) Countries with the most independent central banks tend to have the highest rates of inflation.

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Definitions:

Medicalization

The increasing influence of the medical profession in defining what is normal/healthy and abnormal/ill.

Diagnosed

The process of identifying a disease or condition by its signs, symptoms, and from the results of various diagnostic procedures.

Advances In Science

The progress and innovations in various scientific fields over time, contributing to knowledge and technology development.

Obesity

A state characterized by a BMI of 30 percent or more in an adult.