Michael Woodford Says the Following Is an Advantage of Interest-Rate

question 32

Multiple Choice

Michael Woodford says the following is an advantage of interest-rate instruments for central banks.

• A) Conduct monetary policy without inflation.
• B) Conduct monetary policy even if checking deposits pay interest at competitive rates.
• C) Conduct monetary policy without government approval.
• D) Conduct monetary policy with consumers in mind.
• E) Conduct monetary policy with workers in mind.

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Definitions:

Enterprise

A business or company, especially when considered in terms of its size, complexity, or organizational structure.

Downstream Partners

Companies or entities that perform activities in the later stages of the supply chain, closer to the end consumers, such as distributors and retailers.

Upstream Partners

Businesses or individuals that provide raw materials, components, or services to another company for the production of goods.

Production Rate

is the speed at which goods are manufactured or produced in a given period, often measured in units per hour or products per day.