One Argument for an Independent Central Bank Is

question 77

Multiple Choice

One argument for an independent central bank is:

• A) successful monetary policy requires a long time horizon usually well beyond the next election of most public officials.
• B) without independence competent people would not take a position in a central bank.
• C) the central bank usually hires more competent individuals than the Treasury department or other finance ministries.
• D) central bankers have a short-run focus that usually corrects problems faster.

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Definitions:

Selective Attention

The process of focusing on a particular object in the environment for a certain period while ignoring others.

Preadolescent Years

The period in a child's life immediately before they enter adolescence, typically ranging from ages 9 to 12.

Longitudinal

A research design involving repeated observations of the same variables over an extended period of time.

Emotional Bond

A deep connection between individuals, characterized by feelings of affection, trust, and loyalty.