The Central Bank Often Deviates from Simple Policy Rules Because

question 103

Multiple Choice

The central bank often deviates from simple policy rules because:

• A) the rules are always wrong.
• B) they have new and more detailed information.
• C) they are ordered to by the president.
• D) they have no discretion.
• E) the federal government is more interested in unemployment.

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Definitions:

Directly Attributable Costs

Costs that can be directly linked to a specific asset, activity, or project, and thereby included in its cost base.

Assumes Liabilities

The process by which one party takes on the legal responsibility for the debts or obligations of another party.

Fair Values

The market value of selling an asset or the outlay for a liability transfer in a negotiated agreement among trading participants at the time of estimation.

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of the identifiable net assets of the acquired business.