Question

What is the main advantage of an unconditional policy​ commitment? A. Not strictly maintaining the commitment could be viewed as reneging on a​ promise, and the central bank could lose significant credibility. B. If conditions suddenly change where a change in the policy stance may be​ warranted, unconditional policy commitment allows for such flexibility. C. It provides a significant amount of​ certainty, which makes it easier for markets and households to make decisions about the future.

Answer 1

The answer is letter C

Step-by-step explanation:

The main advantage of an unconditional policy commitment is that It provides a significant amount of​ certainty, which makes it easier for markets and households to make decisions about the future.