Central banks can improve the welfare of a society by doing all of the following except:
A)Serving the interests of government rather than the public at large
B)Helping to promote economic growth
C)Focusing on keeping the overall level of prices stable
D)Helping to reduce the volatility of business cycles

Question

Quizplus · Accepted Answer

Serving the interests of government rather than the public at large is not a way in which central banks can improve the welfare of a society. Central banks should aim to serve the interests of the public by promoting economic growth, keeping the overall level of prices stable, and reducing the volatility of business cycles. Serving the interests of the government alone may not necessarily lead to the overall welfare of the society.

Central Banks Can Improve the Welfare of a Society by Doing