If a Country Replaces Its Politically-Controlled Central Bank with One

question 45

Multiple Choice

If a country replaces its politically-controlled central bank with one that is independent this will decrease inflation expectations and thereby increase investment. This will impact its economy by

• A)increasing aggregate demand.
• B)decreasing aggregate demand.
• C)increasing aggregate supply.
• D)decreasing aggregate supply.

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Definitions:

Sherman Act

A foundational antitrust law in the United States, passed in 1890, aimed at prohibiting monopolistic business practices and ensuring competition.

Sherman Act

A foundational antitrust law in the United States aimed at prohibiting monopolistic practices and promoting competition.

Antitrust Legislation

Laws implemented to prevent anti-competitive practices, monopolies, and to promote fair competition in the marketplace.

Triple Damages

A legal term referring to a form of punitive damages awarded by a court, where the amount of actual damages is tripled as a penalty or deterrent to the defendant.