Multiple Choice
Zero inflation
A) would limit the flexibility of the labor market and so could at times raise unemployment.
B) might be dangerous because it could lead to rapidly increasing prices.
C) would make it easy for the Central bank to create negative real interest rates.
D) is impossible to achieve in the real world.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: Provide an example of how current expenditures
Q2: The cost of inflation reduction is less
Q3: There are ways that policymakers could reduce
Q4: Part of the argument against deficits is
Q5: Some economists argue that policymakers can use
Q7: An increase in government expenditures may lead
Q8: Suppose a country has had a high
Q9: According to political business cycle theory, if
Q10: If the central bank has discretion to
Q11: Suppose tax policies are changed to encourage