Rao Aiyagai Argues That the

Multiple Choice

Rao Aiyagai argues that the

A) costs of reducing the inflation rate to zero would exceed the benefits.
B) costs of reducing the nominal interest rate to zero would exceed the benefits.
C) benefits of reducing the inflation rate to zero would exceed the costs.
D) benefits of reducing the nominal interest rate to zero would exceed the costs.
E) optimal performance of an economy is where nominal and real interest rates are equal.