Multiple Choice
Which of the following is not a reason that the central bank does not aim for zero inflation?
A) Measured inflation tends to be higher than actual inflation.
B) The inflation rate would be more likely to be negative.
C) This would limit the ability of the central bank to stimulate the economy
D) Positive inflation "greases the wheels" of the labour market.
Correct Answer:
Verified
Correct Answer:
Verified
Q45: When the Bank of Canada makes an
Q46: To increase the money supply,the Bank of
Q47: The governor of the Bank of Canada
Q48: Figure 12.3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 12.3
Q49: To decrease bank reserves,the Bank of Canada
Q51: Figure 12.5<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 12.5
Q52: The most important policy tool used by
Q53: By rescuing large,troubled institutions,as happened during the
Q54: Which of the goals pursued by policymakers
Q55: Figure 12.2<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4177/.jpg" alt="Figure 12.2