Which of the Following Is Not an Appropriate Policy for a Central

question 237

Multiple Choice

Which of the following is not an appropriate policy for a central bank to follow if the economy is plagued with deflation?

• A)increasing the target interest rate on overnight loans
• B)using expansionary monetary policy to drive down interest rates
• C)consistently pursuing policy to promote the credibility of the central bank
• D)explicitly and credibly targeting inflation

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Definitions:

Female Fetus

An unborn offspring developing within the womb, characterized by XX chromosomes, leading to the development of female sex characteristics.

Gonads

The reproductive organs in both males and females that produce gametes; testes in males and ovaries in females.

Biological Sex

The classification of individuals as male or female based on physical and genetic characteristics, such as chromosomes, hormones, and reproductive organs.

Prenatal Development

The process of growth and development within the womb from conception to birth.