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

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Definitions:

Mental Set

A tendency to approach a problem in one particular way, often a way that has been successful in the past.

Particular Way

A specific manner, method, or approach to doing something.

Problem

A situation, condition, or issue that needs to be resolved.

Mental Set

A cognitive framework consisting of a person's usual way of approaching and solving problems, often leading to a fixation on previous solutions.