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Which of the Following Is an Appropriate Definition of the Target

Question 69

Multiple Choice

Which of the following is an appropriate definition of the target inflation rate?


A) The inflation rate at which unemployment is zero
B) The central bank's goal for the average rate of inflation over the short run
C) The central bank's goal for the average rate of inflation over the long run
D) The inflation rate at which net exports are maximized
E) None of these

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