Multiple Choice
A problem associated with targeting inflation at zero is that:
A) it could lead to hyperinflation in the long run.
B) it could lead to deflation.
C) it could lead to a deficit in the government budget.
D) it could reduce aggregate demand.
E) it could reduce net exports.
Correct Answer:
Verified
Correct Answer:
Verified
Q64: According to the Taylor rule, the Fed
Q65: The figure below shows the aggregate demand
Q66: Critics of inflation targeting argue that _.<br>A)it
Q67: Starting from a position of macroeconomic equilibrium
Q68: It is difficult for policy makers to
Q69: The crowding-out effect implies that an increase
Q71: Believers in the hypothesis of rational expectations
Q72: Which of the following is true?<br>A)Rational expectation
Q73: Why is the time lag for making
Q74: Before the global economic crisis, the United