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.

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Definitions:

Underpayment Penalty

A penalty charged by tax authorities for failing to pay enough of one's total tax liability by the tax deadline, often calculated as a percentage of the unpaid tax.

Adjusted Gross Income

Gross income minus adjustments, used as a base for calculating taxable income and determining eligibility for certain tax deductions and credits.

Social Security Taxes

Taxes paid by workers and employers to fund the Social Security program, which provides retirement, disability, and survivorship benefits.

Medicare Taxes

Taxes withheld from pay or paid on profits that contribute to the Medicare program, providing health insurance for individuals over 65.