The Situation in Which Central Bankers Are Insulated from Short-Term

question 34

Multiple Choice

The situation in which central bankers are insulated from short-term political considerations and are allowed to take a long-term view of the economy is called:

• A)being an inflation dove.
• B)being an inflation hawk.
• C)central bank independence.
• D)the inside lag of monetary policy.

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Definitions:

Utility Schedule

A representation that shows various quantities of a commodity or service and the utility or satisfaction derived from each.

Marginal Utility

The augmented satisfaction or value derived from the consumption of one extra unit of a product or service.

Total Utility

Measures the total satisfaction or benefit that a person derives from consuming a certain quantity of a good or service.

Utility Schedule

A table showing the different levels of utility or satisfaction derived from consuming varying amounts of a good or service.