In an Attempt to Manage Expectations,a Central Bank May Prefer

question 30

Multiple Choice

In an attempt to manage expectations,a central bank may prefer to announce an unconditional commitment,because an unconditional commitment ________ than a conditional commitment.

• A)is inherently more credible
• B)may have an impact on expectations that is stronger
• C)places fewer constraints on policy makers
• D)is less likely to have unintended consequences

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