In Order to Maintain Stable Prices, What Must the Central

question 162

Multiple Choice

In order to maintain stable prices, what must the central bank do?

• A) maintain low interest rates
• B) keep unemployment low
• C) tightly control the money supply
• D) sell indexed bonds

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Definitions:

James Madison

The fourth President of the United States (1809-1817), known as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution.

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A term that might refer to a newer generation or faction within the Republican Party, emphasizing different or evolving priorities and policies from older members.

Economic Independence

The state of having sufficient personal wealth to live, without needing to work actively for basic necessities, allowing individuals or nations to operate without being influenced by external economic pressures.