Which Is the MOST Credible Monetary Policy Action

question 79

Multiple Choice

Which is the MOST credible monetary policy action?

• A) The central bank makes policy actions in secret to avoid speculation.
• B) The central bank attempts to confuse the public by changing its policy stance frequently.
• C) The central bank announces its policy in public and sticks with the policy over time.
• D) The central bank does nothing to the economy regardless of any economic shock.

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Definitions:

Live Longer

Refers to the increase in lifespan experienced by populations over time, often attributed to advances in healthcare, nutrition, and living conditions.

Health Care Costs

The expenses associated with medical care, including treatments, procedures, medications, and hospital stays.

Older Americans

Individuals who are in the later stage of life, often defined as being 65 years of age or older in the United States, with distinct social, economic, and health characteristics.

Social Security

A government program that provides monetary assistance to people with inadequate or no income, particularly the elderly, disabled, and families with children.