The Two Principal Criticisms of the State-Centered Approach to Monetary

question 9

Multiple Choice

The two principal criticisms of the state-centered approach to monetary politics are

• A) it is more prescriptive than explanatory and it does not answer what incentives for currency strength exist for the people who run independent central banks.
• B) it is more explanatory than prescriptive and it does not answer what incentives for price stability exist for the people who run independent central banks.
• C) it is more prescriptive than explanatory and it does not answer what biases against labor exist for the people who run independent central banks.
• D) it is more prescriptive than explanatory and it does not answer what incentives for price stability exist for the people who run independent central banks.
• E) it is more prescriptive than explanatory and it does not answer what biases for capital savers exist for the people who run independent central banks.

---

Definitions:

Import Quota

A restriction by a country on the quantity of a good that can be imported over a given period.

Consumer Surplus

The difference in the amount consumers are prepared to pay versus what they actually pay for goods or services.

Trucks

Large motor vehicles designed for transporting goods by road.

Government Revenue

Income received by the government from taxes and other sources used to fund public services and projects.