Multiple Choice
Which of the following is a statement that would be made by an opponent of inflation targets?
A) Inflation targets encourage workers to plan on a low and stable inflation rate and to hold down demands for wage increases.
B) Inflation targets will lead the Bank of Canada to pay less attention to jobs and economic growth.
C) Inflation targets encourage firms to plan on a low and stable inflation rate and to hold down price increases.
D) Inflation targets encourage investors to plan on a low and stable inflation rate and to hold down demands for interest rate increases.
Correct Answer:

Verified
Correct Answer:
Verified
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