If a Central Bank Wishes to Reduce Inflation,it Should Announce

question 4

Multiple Choice

If a central bank wishes to reduce inflation,it should announce its intentions and follow through with them,thereby using _____ monetary policy.

• A) visible
• B) integral
• C) credible
• D) authoritative

---

Definitions:

Alternative Hypotheses

A statement in statistical analysis that proposes a difference or effect, in contrast to the null hypothesis which suggests no effect or relationship.

Error Mean Square

A measure used in statistics to quantify the average of squares of errors or deviations.

Sums of Squared Deviations

The total of the squared differences between each observation in a data set and the mean of that data set, used in various statistical methods to measure variability.

Sample Mean

The average value calculated from a subset (sample) of a population.