All of the Following Are Reasonable Arguments Against Adopting a Zero

Multiple Choice

All of the following are reasonable arguments against adopting a zero inflation target except that a zero inflation target:

A) makes the undesirable effects of deflation more likely.
B) prevents the central bank from achieving a negative real interest rate.
C) is not consistent with long-run price stability.
D) based on the CPI would not generate "true" price stability because of CPI measurement problems.