The Credibility of the Central Bank

question 24

Multiple Choice

The credibility of the central bank:

• A) promotes long-run growth.
• B) is irrelevant for controlling inflation.
• C) is crucial for controlling inflation and stabilizing output.
• D) promotes sensible fiscal policy.
• E) implies low interest rates.

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Definitions:

Foreign Body

Anything that is not normally found in the location; usually refers to dirt, splinters, and so on.

Chemical Burn

An injury caused by exposure to a chemical substance that results in damage to the skin or tissues.

Alkalines

Substances having a pH greater than 7, typically referred to as bases, that can neutralize acids.

Figure-eight Bandage

A method of wrapping a bandage in a pattern that resembles the number 8, typically used to support and immobilize a joint.