Everything Else Equal, If the Growth Rate of a Country

question 92

Multiple Choice

Everything else equal, if the growth rate of a country exceeds its sustainable rate, the central bank:

• A) will keep interest rates low to keep the momentum.
• B) will now identify this new rate as the sustainable rate and try to maintain it.
• C) is likely to raise interest rates to slow the rate of growth.
• D) is likely to lower the interest rate thinking a slowdown is coming to offset this boom.

---

Definitions:

Technical Skill

An ability to perform specialized tasks.

Decision-Making

The procedure of deciding by identifying what choice to make, gathering relevant information, and analyzing possible options.

Technical Roles

Positions or functions that primarily involve specialized expertise or technical skills within an organization.

Henry Mintzberg

A renowned management theorist best known for his work on business strategy and organizational structures.