If a Central Bank Had to Give Up Its Discretion

question 26

Multiple Choice

If a central bank had to give up its discretion and follow a rule that required it to keep inflation low,

• A)the short-run Phillips curve would shift up.
• B)the short-run Phillips curve would shift down.
• C)the long-run Phillips curve would shift right.
• D)the long-run Phillips curve would shift left.

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Definitions:

Pre-acquisition Equity

Refers to the equity interest in a company that exists before it is acquired by another entity.

Post-acquisition Equity

The equity interest in a subsidiary held by the parent company after accounting for any changes since the acquisition date.

Accounting Policies

The particular standards, foundations, norms, regulations, and methods used by an organization to compile and display its financial records.

Consolidation Process

The method of combining and presenting the financial data of a parent company and its subsidiaries as one entity's financial statements.