In Order to Maintain Stable Prices, the Central Bank Must

question 64

Multiple Choice

In order to maintain stable prices, the central bank must:

• A) be more accountable to the public
• B) maintain strict control over the money supply
• C) hire more economists

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Definitions:

Incentive

A thing that motivates or encourages someone to do something or acts as a reward for greater effort.

Motivate Behavior

The driving force behind actions, propelled by desires and needs that influence behavior patterns.

Increase in Drive

An escalation in a motivational or biological imperative that compels individuals towards certain actions or behaviors.

Decrease in Drive

A reduction in the psychological forces that motivate a person to act towards achieving a goal or satisfying a need.