When the actions of a central bank induce actions from other banks in the country
A) the other banks are reacting to an announcement effect.
B) the other banks are concerned about a penalty rate.
C) the other banks are acting to prevent liquidity problems.
D) the other banks are acting as fiscal agents.
Question 2
In understanding the differences of the impact of globalization on inflation in various nations it is important to consider
A) the degree of development in a nation.
B) the structure of income taxes in the country.
C) the degree of central bank independence.
D) all of the above.