Question

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

Answer 1

Answer:

C. credible

Explanation:

A credible monetary policy is the policy where the problem of inconsistency of time can be avoided also the biasness of the inflation also it keeps the inflation under a control.

Therefore in the case when the central bank wants to decrease the inflation so they are using the credible monetary policy

Hence, the correct option is C.